President Donald Trump expressed on Monday that the US economy may face a downturn unless interest rates are reduced promptly, reiterating his discontent with Federal Reserve Chair Jerome Powell.
In a statement on Truth Social, Trump noted, “As costs continue to trend downwards, as I predicted, there can be little inflation; however, we may experience a slowdown in the economy unless Mr. Too Late, a significant failure, lowers interest rates immediately.”
U.S. stock markets opened lower on Monday due to investor apprehensions regarding Trump’s increasing criticisms of Powell, with the S&P 500 Index dropping 2% following the president’s social media remarks.
Trump’s frustration with the Federal Reserve’s cautious stance on interest rates has been evident. A Trump advisor mentioned on Friday that the administration is exploring the possibility of removing Powell from his position, raising concerns about the independence of the central bank amidst an escalating trade conflict.