US President Donald Trump has once again stepped up his criticism of Federal Reserve Chair Jerome Powell, accusing him of undermining economic momentum by refusing to cut interest rates more aggressively. Trump argued that the central bank’s cautious approach is holding back growth at a time when strong economic indicators should justify cheaper borrowing.
Addressing members of the Detroit Economic Club during a visit to Michigan, Trump said that positive market performance should lead the Federal Reserve to lower interest rates rather than keep them elevated. He complained that whenever strong economic data is released, the Fed responds by maintaining or tightening rates instead of easing them. According to Trump, rising markets should be rewarded with lower borrowing costs to sustain growth and confidence.
After making that broader point, Trump turned his criticism directly toward Jerome Powell, escalating a long-running public feud. He claimed that mortgage rates have started to decline despite, not because of, the Federal Reserve’s actions. Trump said that if the Fed were cooperating, economic conditions would improve much faster, adding a personal jab by saying Powell would soon be out of the job.
Trump has repeatedly pressured the Federal Reserve to accelerate interest rate cuts, insisting that lower rates would boost investment, revive manufacturing and ease financial stress on consumers. The central bank, however, has maintained that its policy decisions must prioritise inflation control and long-term economic stability rather than short-term political demands.
The remarks came as Trump visited Michigan to promote his administration’s manufacturing agenda and address concerns about employment trends. During the trip, he toured a Ford facility in Dearborn that manufactures the F-150 pickup truck before speaking to business leaders and economists in Detroit.
Earlier the same day, Trump intensified his attacks by accusing Powell of being either “incompetent” or “crooked,” referring to alleged cost overruns associated with renovations at the Federal Reserve’s headquarters in Washington. That issue has since come under scrutiny by the US Justice Department, further inflaming tensions between the White House and the central bank.
In response, Jerome Powell confirmed that the Justice Department has opened a criminal investigation linked to his earlier testimony before the Senate regarding the renovation project. In a video statement released on Sunday, Powell suggested that the probe was closely connected to the administration’s dissatisfaction with the Fed’s interest rate policies.
Powell said the investigation should be viewed in the context of sustained political pressure on the Federal Reserve, arguing that the threat of legal action stems from the institution’s decision to set rates based on economic analysis rather than presidential preference. He stressed that while no official is above the law, the situation was unprecedented and raised serious concerns about political interference in monetary policy.
Powell is expected to step down as Federal Reserve Chair in May, and Trump is widely expected to announce a successor by the end of the month, setting the stage for a potentially significant shift in US monetary policy leadership.
