Former President Donald Trump has recently called on the U.S. Federal Reserve to cut interest rates again. This call comes in the wake of a stronger-than-expected jobs report for April, which showed positive trends in the labor market.
Since his departure from office, Trump has continued to vehemently attack the Federal Reserve. Most recently, he laser focuses his attack on its chairman, Jerome Powell, in his comments. He previously expressed discontent with Powell’s handling of interest rates, stating that he has “no intention” of firing him, despite ongoing speculation about his influence over the central bank’s decision-making process.
The recent jobs report, which revealed a rise in nonfarm payrolls, prompted Trump to take to Truth Social to voice his opinion. He remarked, “Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!” His comments are indicative of an increasing frustration coming from certain corners about the Fed’s interest rate policy.
On April 20, the stocks market went into a mini-buying panic, spurred on by Trump’s tweet storm targeting Powell. Major indexes and the U.S. dollar fell sharply. A large part of this decline was driven by concerns that Trump would eventually move to replace Powell with someone more amenable to political pressure to lower interest rates.
Jerome Powell’s term as Fed chair expires May 2026. He argues that Trump lacks the legal authority to fire him before that date. At a recent Investor Forum on April 16, 2025, at the Economic Club of Chicago, he calmed jittery investors. He underscored that the Federal Reserve is entirely dedicated to upholding its independence from the executive branch.
Econ aide Kevin Hassett told Business Insider that the White House is drafting new rules for the Fed, rules that could let Trump fire Powell. This potentiality is causing extreme panic in financial markets. The possibility that Trump will try to use his new influence over monetary policy to pursue his interests still haunts investors.
In retrospect, Trump’s efforts to influence the Federal Reserve’s decision-making process are more apparent as he looks to establish himself in his new role as a post-president. He stated, “I have a Fed person who is not really doing a good job,” while asserting that he knows “much more than he does about interest rates, believe me.”