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Trump slams Powell, calling him 'major loser'
Tensions between the Federal Reserve and the White House are boiling over. President Donald Trump has openly criticized Fed Chairman Jerome Powell, calling him a "major loser" and demanding an immediate interest rate cut, no questions asked.
Trump has warned that the US economy will slow unless the Fed acts quickly to ease policy. In his view, pre-emptive action is essential, citing what he claims is negligible inflation and falling costs for energy and "most other things."
Analysts note that this is not Trump's first public attack on Powell. The president and his administration are reportedly looking for legal ways to oust the Fed chief before his term expires in 2026.
Powell, however, is standing his ground. He has pushed back hard against any suggestion of early dismissal, reminding the US administration that the law prohibits the president from removing the Fed chair at will. Evercore ISI Vice Chairman Krishna Guha warns that any attempt by Trump to fire Powell could trigger a sharp sell-off in the US equity market and ultimately weaken the dollar further.
The feud escalated after Powell cautioned that Trump's tariffs could drive up prices, even as the economy slows and labor markets soften. In response, the president suggested the Fed chair should "resign as soon as possible."
© InstaFintech Group
