Trump Accuses Fed Chair Powell of Political Motives in Rate Cut Delay

President Donald TRUMP has openly criticized Federal Reserve Chair Jerome Powell, suggesting political motivations behind the delay in reducing interest rates. Speaking alongside the Philippine president at the White House, Trump claimed Powell's reluctance to implement a Fed rate cut extends beyond economic strategy, though he ruled out firing the Fed chair before his term ends in 2026.

The president argued current economic conditions warrant rates as low as 1%, accusing the Fed of ignoring clear signals of a slowdown. Trump also targeted Powell over the Federal Reserve's high renovation costs, while Representative Anna Paulina Luna escalated tensions by referring Powell to the Department of Justice over perjury allegations.

Despite acknowledging the economy's resilience, Trump warned Powell's stance threatens progress. The remarks highlight growing scrutiny of central bank policies as markets weigh the implications of prolonged higher rates.