US President Donald Trump reopened fire against Federal Reserve Chairman Jerome Powell on Wednesday, mere hours before the central bank released its ruling to keep interest rates steady for the fourth time in a row.
In remarks to reporters at the White House, Trump joked about replacing Powell himself, and he quipped, “Maybe I should go to the Fed. Am I allowed to appoint myself? I’d do a much better job than these people.”
Trump appointed Powell in his first term but has since been an outspoken critic, specifically of what he perceives as Powell’s belated monetary actions. “I call him ‘too late Powell’ because he’s always too late. Every time I made a move, I was right. He was wrong,” Trump stated.
Later on Wednesday, the Fed left its benchmark lending rate between 4.25% and 4.50% at the conclusion of its two-day meeting. The central bank also confirmed expectations for two rate cuts this year amid persistent uncertainty surrounding the economic outlook. It updated forecasts to reflect slightly reduced GDP growth and higher inflation and unemployment expectations.
Although Trump has before suggested removing Powell from his job, he explained that he would not do so until Powell’s term expires next year. Nevertheless, he assailed President Biden for his reappointment of Powell, insisting, “He’s done a poor job.”
The Fed’s most recent move comes in the face of conflicting economic indicators, including worries over inflation, weakening growth, and international instability including Middle East tensions. Trump reiterated his conviction that the Fed has been consistently behind in its reactions and placed blame on Powell for not reacting earlier to rate cuts.
Trump’s comments may rekindle controversy around political pressure on the central bank’s autonomy as the 2024 election cycle heats up.
