'Mr. Too Late must cut rates': Trump escalates Fed criticism
3 Min Read
In a Truth Social post on Monday, Trump cited declining prices across several sectors to argue that inflation is no longer a significant threat.
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President Donald Trump speaks with reporters during a swearing-in ceremony for Dr. Mehmet Oz to be Administrator of the Centers for Medicare and Medicaid Services, in the Oval Office of the White House, Friday, April 18, 2025, in Washington. (AP)
US President Donald Trump has renewed calls for immediate interest rate cuts, warning that continued inaction by Federal Reserve Chair Jerome Powell could lead to an economic slowdown, even as key price indicators point to easing inflation.
In a Truth Social post on Monday, Trump cited declining prices across several sectors to argue that inflation is no longer a significant threat. "With Energy Costs way down, food prices (including [former President Joe] Biden's egg disaster!) substantially lower, and most other 'things' trending down, there is virtually No Inflation," he wrote.
Trump attributed these favorable trends to his own predictions and maintained that the Federal Reserve's high-rate stance is increasingly unjustified. "With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," he added, referring to Powell.
The criticism is part of a broader and escalating conflict between the White House and the Federal Reserve. On Friday, White House economic advisor Kevin Hassett confirmed that the administration is actively considering removing Powell, stating, "The president and his team will continue to study that matter." Trump, who appointed Powell during his first term, has not concealed his dissatisfaction, warning, "If I want him out, he'll be out of there real fast, believe me."
Though Trump cannot directly fire the Fed chair, reports suggest he has explored the possibility of citing "cause" for removal, a move that would likely face significant legal and institutional pushback.
Read more: Trump threatens to remove Fed Chair Powell amid tariff-inflation clash
Tariff tensions
The tension follows recent warnings from Powell and other Fed officials about Trump's aggressive tariff policies.
Powell noted at the Economic Club of Chicago that such measures risk pushing inflation upward and could complicate the Fed's efforts to balance price stability with employment. "Tariffs are highly likely to generate at least a temporary rise in inflation," he warned.
Despite these concerns, Trump continues to argue that the current economic indicators warrant rate cuts. He has contrasted Powell's caution with European Central Bank President Christine Lagarde's decision to lower rates in the eurozone, dubbing Powell "Too Late."
Lagarde, however, expressed support for her US counterpart, stating, "I have a lot of respect for my friend and esteemed colleague."
