U.S. President Donald Trump reignited his criticism of the Federal Reserve on Tuesday evening, expressing dissatisfaction with Fed Chair Jerome Powell and asserting that he understands interest rates better.
During a rally in Warren, Michigan, marking his first 100 days in office, Trump refrained from naming Powell directly but made clear references to his ongoing disapproval of the central bank’s leadership.
“Interest rates dropped even though I’ve got someone at the Fed who isn’t doing a great job,” Trump said, adding, “But I won’t say that—I want to be respectful.” He continued, “You’re supposed to let the Fed act independently, but trust me, I know more about interest rates than he does.”
Trump has repeatedly pressured Powell to lower interest rates and warned earlier in April that failure to do so could trigger a recession. Though he later stated he did not plan to remove Powell from his post, Trump’s comments have fueled speculation over the independence of the Federal Reserve, traditionally insulated from presidential influence.
Attention has also turned to an upcoming Supreme Court case involving Trump’s dismissal of two federal labor board officials. The decision could have broader implications for presidential control over federal agencies, including the Fed.
Observers, including Nick Timiraos of The Wall Street Journal, have suggested that Trump may be setting up the Fed as a scapegoat for potential economic damage caused by his aggressive trade tariff policies.
Powell—who was appointed by Trump during his first term—has largely dismissed these criticisms and indicated that the Fed intends to hold rates steady for now due to uncertainty stemming from the administration’s trade policies. Factors like stagnant inflation, softening consumer confidence, and the ongoing trade dispute with China have added to the Fed’s cautious stance.
Powell has affirmed his intention to serve out his full term, which runs through May 2026.
The central bank has cut rates by 1% through 2024 following a notable drop in inflation but signaled a slower pace of easing in 2025 due to persistent inflation risks and overall economic uncertainty. However, should economic conditions worsen under Trump’s policy agenda, the Fed could be compelled to act more aggressively.
