Trump Powell attacks interest rates fed

President Donald Trump On Monday invaded his pressure campaign on Federal reserve Chairman Jerome Powellcalling it a “main loser” and warning that American economy It can be delayed unless interest rates are decreased immediately.

“” Preventive cuts “of interest rates are required by many,” Trump writes to True socialS

Trump claims that there is currently there is almost no inflation in the United States and it costs energy and “most other” things “are in decline.

“With these costs, the trend is so well down, exactly what I predicted to do, there can be almost no inflation, but there may be a delay in the economy unless a gentleman, a major loser, lowers interest rates, now Trump writes.

Trump’s last volume against Powell – whom he appointed during his first administration – he came as a president and his team studied whether they could legally fire the central bank leader before his term expires in May 2026.

Powell categorically stated that the president could not remove him under the law.

Any Trump’s attempt to fire Powell is likely to cause a steep sale of stock markets in the US, Vice President of Evercore ISI Krishna Guha He told CNBC on Monday.

“If you start raising questions about the independence of the Federal Reserve, you raise the lawyer so that the Federal Reserve can. If you are actually trying to remove the chairman of the Federal Reserve, I think you will see a serious reaction to the markets with higher income, dollars and the shares that are sold.”Squawk boxS “

“I can’t believe this is trying to achieve the administration,” Gua said.

The stock exchange, which is already falling apart from increased uncertainty and other concerns arising from plans for a vast Tariff Administration of Trump, sunk on Monday morning. Dow Jones Industrial average reduced 750 points, nearly 2% decline, within the first hour of trade, while NASDAQ fell by 2.6%.

Meanwhile the US dollar, fell to its lowest level From 2022. goldthat reached a record high price on Monday while the reference indicator 10-year ministry of Finance’s yield He crawled.

Trump’s latest attacks against Powell followed the proposal by the central bank leader last week that the president’s trade war would limit growth and could nourish inflation.

The tariffs “probably” are likely to be away from their goals … Probably for the balance of this year, “Powell said at Chicago’s Economic Club.

Powell also stopped to suggest that the cut of interest rates was on the horizon.

“For now, we are well positioned to wait for more clarity before we look at any adjustments to our politics,” he said.

– Alex Harring of CNBC has contributed to this report.