Trump Targets Powell Again, Calls for Fed Rate Cut

On October 29th, President Trump criticized the Federal Reserve on Thursday. He once again directed his criticism at Fed Chair Jerome Powell, accusing him of being slow to take action on interest rate cuts. In a speech in South Korea, Trump mentioned "Jerome 'Too Late' Powell", which caused laughter among business executives and leaders attending the Asia-Pacific Economic Cooperation summit. Trump further said, "We will not allow the Fed to raise interest rates because they are concerned about inflation three years from now." This statement may imply that he recognizes that inflation could eventually pick up. He predicted that the U.S. economy will achieve 4% growth in the first quarter of 2026, which is significantly higher than the median economist forecast from a Reuters survey. As economists believe, the new import tariffs imposed by the Trump administration are expected to continue to have a negative impact on economic growth. Thursday's remarks highlighted the tense relationship between Trump and the Fed. Trump criticized Powell for not cutting rates quickly enough, stating that the Fed lagged behind its European counterparts and damaged business confidence. (FXStreet)