Trump demands immediate resignation of Fed chief over slow rate cut
Date: 2025-04-18 Author: Gabriel Deangelo Categories: IN WORLD
Donald Trump has spoken harshly about Federal Reserve Chairman Jerome Powell, accusing him of failing to respond promptly to economic challenges. According to the former president, the Fed is dragging its feet on reducing interest rates, unlike the European Central Bank, which continues an active policy of making loans cheaper.
Earlier, Powell announced that he would maintain a cautious approach, citing uncertainty in the economy, caused, among other things, by high import duties imposed by Trump himself. According to him, preliminary signals indicate a weakening of economic activity, and in the long term this could lead to stagflation, a phenomenon that has not been observed in the United States for decades.
This point of view was supported by the head of the Federal Reserve Bank of New York, John Williams. He predicted a slowdown in GDP growth and an increase in unemployment to 4.5-5% next year. In addition, in his opinion, the increase in tariffs will accelerate inflation to 3.5-4%, which is significantly higher than the Fed's target level of 2%.
Meanwhile, on April 17, the ECB lowered its key interest rates for the seventh time in a row. From April 23, rates will fall by 25 basis points to 2.25%, 2.4% and 2.65%. Against this background, Trump noted that the American regulator is lagging behind the Europeans and called the Fed's actions "criminal negligence".
"Energy and food prices are falling, and the U.S. economy is benefiting from tariffs. The Fed should have started lowering rates long ago. Powell is not doing his job - he needs to be fired immediately," Trump wrote in his address.
On the Polymarket forecast market, expectations for a rate cut in June have fallen: if at the beginning of April the probability of such a scenario was estimated at 84%, now it is only 54%.
Analysts point out that a possible easing of monetary policy could be a positive signal for risky assets, including cryptocurrencies. Many investors are watching the Fed's next steps with interest, since the rate directly affects the attractiveness of alternative investments.
