Trump Slams Powell, Powell Responds: Interest Rate Dispute Shakes US Economy

Trump Criticizes Powell's Interest Rate Stance; Powell Responds Washington D.C. - President Donald Trump publicly criticized Federal Reserve Chairman Jerome Powell for his decision against lowering interest rates. White House Press Secretary Karoline Leavitt relayed Trump's assertion that Powell's actions put the U.S. at an economic disadvantage compared to China and other nations. Leavitt stated, “President Trump declared that he believes the Fed Chair is making a mistake by not lowering interest rates.” However, Powell later issued a statement clarifying that their meeting did not involve discussions about monetary policy expectations. Powell emphasized that the path of policy would depend entirely on incoming economic data and its implications. He stated, “Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook.” This exchange highlights the ongoing tension between the executive and independent branches of the U.S. government regarding economic policy. The situation underscores the importance of clear communication and coordination on matters of national economic strategy.