On April 22, 2025, U.S. President Trump once again pressured the Federal Reserve to lower interest rates. Trump stated that although he had no intention of dismissing Federal Reserve Chairman Powell, he hoped Powell would take a more proactive approach regarding interest rates. This statement once again highlighted Trump's strong stance on economic policy, especially given his frequent public criticisms of the Federal Reserve during his first term, constantly urging the Fed to cut rates, and this pressure has not waned since Trump's re-election.
In a recent public speech, Trump pointed out that the Federal Reserve should immediately take measures to cut interest rates, particularly in the current complex economic environment. He criticized Powell for being too slow in response and suggested that Powell should have adopted rate-cutting policies in advance like the European Central Bank. Trump further remarked that Powell's actions were "always too late and wrong" and stated that "the sooner Powell leaves, the better." These remarks have attracted market attention and unease. The market fears that Trump might fire Powell, potentially undermining investor confidence in U.S. stocks, bonds, and the dollar, causing gold prices to soar to record highs.
In response, Federal Reserve Chairman Powell firmly insisted that the Federal Reserve would not be swayed by political pressure and would maintain its independence. He emphasized that the Fed would continue to focus on combating inflation and would not make inappropriate decisions due to the Trump administration's tariff policies or other economic challenges. This public confrontation over rate cuts and the Fed's independence is expected to continue influencing the movements of the U.S. financial markets in the future.
