Donald Trump has attacked the head of the US central bank for not cutting interest rates, stating that Jerome Powell's "termination cannot come fast enough!". The US president took to social media to renew his criticism of Powell ahead of the third interest rate cut this year by European Central Bank (ECB). On Thursday, it announced that it had reduced the key rate "owing to rising trade tensions". Trump, who nominated Powell as Federal Reserve chair in 2017 during his first term, wrote that he "is always TOO LATE AND WRONG" on reducing borrowing costs. Trump continued: "Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now." While oil prices have fallen since the start of the month when Trump unveiled his tariff regime, eggs prices have risen to $6.23 per dozen, according to official data. Meanwhile, the BBC has found no evidence for Trump's claims abouthow much money the US is collecting from tariffs. As Trump attacked Powell, Christine Lagarde, president of the ECB defended her American counterpart. "I have a lot of respect for my friend and esteemed colleague Jay Powell," said Lagarde as she discussed the decision to cut European interest rates from 2.5% to 2.25%. "We have a solid, steady relationship amongst central bankers." The president lashed out after Powell said on Wednesday that US economic growth will be hit and prices will rise for consumers as a result of Trump's tariffs. He said the import taxes were larger than the bank had expected, going beyond the higher end of its estimates. There has been turmoil on global stock markets as investors reacted to the tariffs and an escalating trade war between the US and China. Mr Powell said: "The level of the tariff increases announced so far is significantly larger than anticipated. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth." The US president has said tariffs will boost US manufacturing and jobs but economists have warned they risk fuelling inflation. Trump campaigned on cutting inflation. It isnot the first time that Trump has targeted Powell, who he nominated to replace Janet Yellen who the president accused of keeping interest rates too low. The president's campaign promises included calls for lower interest rates in order to bring relief to borrowers. Since returning to office, Trump has stoked a trade war by introducing a 10% tax on goods being imported to the US from the vast majority of countries. He has escalated tariffs further with China by putting a 145% tax on Chinese goods, though there are some exemptions for smartphones. China has hit back with tariffs of 125% on US products. The White House said on Wednesday that when the new tariffs are added on to existing ones the levies on some Chinese goods could reach 245%. Mr Powell said that despite the uncertainty and ructions in the markets, the "US economy is still in a solid position". For now, he said, the Fed could keep its benchmark interest rate steady "to wait for greater clarity before considering any adjustments". The Fed's benchmark interest rate is currently set in a range between 4.25% and 4.5%, where it has been since December following a series of rate cuts late last year. If tariffs push up inflation, as many economists expect, the Fed could decide to hold or even raise rates. Traders on Wednesday kept their bets it will continue to cut rates this year. But the Fed also has a mandate to maintain maximum employment as well as stable prices. Should it be caught between rising inflation and a rising unemployment rate, Mr Powell said "we would consider how far the economy is from each goal" and then look at "the potentially different time horizons" for getting prices under control and bringing the unemployment rate down. "As that great Chicagoan Ferris Bueller once noted, "life moves pretty fast", he added.
Trump attacks Fed boss for not cutting interest rates
TruthLens AI Suggested Headline:
"Trump Criticizes Federal Reserve Chair Powell Over Interest Rate Decisions"
Bbc News
7.8
TruthLens AI Summary
Donald Trump has publicly criticized Jerome Powell, the chair of the Federal Reserve, for not cutting interest rates, stating that Powell's departure from his position would be welcome. Trump's comments came as the European Central Bank (ECB) announced a reduction in its key interest rate, attributing the decision to increasing trade tensions. The president expressed his dissatisfaction on social media, claiming that Powell is consistently late and incorrect in his decisions regarding borrowing costs. Despite Trump's assertion that various prices, including oil and groceries, are declining, data indicates that egg prices have surged significantly. Furthermore, reports have emerged questioning the validity of Trump's claims regarding the revenue generated from tariffs imposed on imports, highlighting the complexities of the economic situation amid the ongoing trade war with China.
In response to Trump's criticisms, Christine Lagarde, the president of the ECB, defended Powell, emphasizing their collaborative relationship as central bankers. Powell has previously warned that the tariffs enacted by Trump could adversely affect US economic growth and lead to rising consumer prices. The Federal Reserve has maintained its benchmark interest rate since December, and Powell has indicated a cautious approach moving forward, aiming to balance the Fed's dual mandate of maximum employment and stable prices. As the administration's trade policies continue to evolve, economists remain concerned about the potential inflationary effects of the tariffs. The ongoing tensions in the stock market reflect investor apprehension regarding the broader implications of these economic measures, as Powell navigates the uncertain landscape of US monetary policy amidst Trump's aggressive tariff strategy.
TruthLens AI Analysis
This news piece highlights a public clash between former U.S. President Donald Trump and Federal Reserve Chair Jerome Powell over interest rate policies, framed against broader economic tensions and the European Central Bank’s (ECB) recent rate cut. The article weaves together political rhetoric, economic data discrepancies, and international central bank dynamics, raising questions about motives and underlying narratives.
Political Pressure on Central Bank Independence
Trump’s criticism of Powell—whom he appointed—reflects a recurring theme of his presidency: attempts to influence the Fed’s decisions for political gain. By accusing Powell of being "too late and wrong," Trump aligns himself with pro-growth messaging, appealing to his base amid trade wars and inflationary concerns. The timing, coinciding with the ECB’s rate cut, suggests a strategic effort to contrast U.S. policy with global trends, portraying Powell as out of step.
Economic Claims vs. Reality
The article debunks several of Trump’s assertions, such as falling grocery prices (while egg prices rose) and unverified tariff revenue claims. This disconnect underscores a pattern of hyperbolic or misleading statements used to shape public perception. The BBC’s fact-checking role here subtly undermines Trump’s credibility, positioning the report as a corrective to populist narratives.
Global Central Bank Solidarity
ECB President Christine Lagarde’s defense of Powell highlights institutional solidarity among central bankers, emphasizing their shared commitment to apolitical decision-making. This contrasts sharply with Trump’s adversarial stance, reinforcing a narrative of institutional resilience against political interference.
Market and Geopolitical Implications
Powell’s warning about tariffs harming U.S. growth and consumer prices ties the story to broader market anxieties, particularly the U.S.-China trade war. The article implies that Trump’s policies may exacerbate economic instability, a concern for investors and policymakers alike.
Manipulation and Audience Targeting
The piece could be seen as countering Trump’s populist rhetoric by emphasizing factual inaccuracies and institutional pushback. It likely resonates with audiences skeptical of Trump’s economic stewardship, including centrist economists and international observers. The focus on ECB actions also signals a transatlantic economic linkage, appealing to readers attuned to global policy shifts.
AI and Narrative Influence
While there’s no overt evidence of AI-generated content, the structured debunking of claims and reliance on authoritative sources (BBC, official data) suggest a methodical approach to shaping consensus. If AI were involved, it might amplify this fact-based framing to counter disinformation, though the tone remains conventionally journalistic.
Trustworthiness Assessment
The article earns moderate-to-high credibility for its use of verified data (e.g., egg prices) and balancing Trump’s claims with counterpoints. However, its emphasis on Lagarde’s support for Powell could reflect editorial bias toward institutional legitimacy. The lack of deep exploration into tariff revenue specifics is a minor omission.