Former U.S. President Donald J. Trump took to Truth Social on Monday evening to issue a sharp critique of Federal Reserve Chairman Jerome Powell, urging immediate preemptive interest rate cuts and accusing Powell of being “too late” in responding to economic conditions.
In his post, Trump claimed that energy and food prices—including what he mocked as “Biden’s egg disaster”—have fallen significantly, along with other costs, leading to what he described as “virtually no inflation.” He argued that unless Powell acts swiftly, there could be a “slowing” of the economy. “There is virtually No Inflation. With these costs trending so nicely downward… there can almost be no inflation,” Trump wrote. “But there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.”
Trump also noted that Europe has already lowered interest rates seven times, suggesting the U.S. Federal Reserve is lagging behind in its policy response. He accused Powell of politically motivated actions in the past, alleging the Fed lowered rates during the previous election cycle to aid President Joe Biden and Vice President Kamala Harris. “Powell has always been ‘Too Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden,” Trump added.
The post comes amid growing pressure on the Fed to signal possible rate cuts as inflation data softens and global central banks begin easing. Trump’s remarks echo similar statements he made during his presidency, where he often clashed with Powell over monetary policy.
With the 2024 U.S. elections behind and Trump eyeing a potential return to power, his renewed focus on interest rates and the Fed could set the tone for economic debates in the lead-up to 2025’s key fiscal policy decisions.
