Trump’s stop-start tariff policy has unnerved investors and governments around the world, leaving them unsure about his long-term strategy and what it might mean for international trade.
The US central bank has adopted a wait-and-see attitude to cutting rates, holding them steady at 4.25 to 4.5 per cent since the start of this year.
Trump has frequently criticized the Fed chairman, whom he originally nominated during his first term, accusing Powell of playing politics.
Trump’s earlier post suggested Powell’s decisions were “Too Late” and that he should have followed the European Central Bank’s lead, which on Thursday lowered its benchmark deposit rate by a quarter point.
ECB chief Christine Lagarde expressed her confidence in Powell following Trump’s remarks, saying she had “a lot of respect for my friend and esteemed colleague”.
On the campaign trail in August, Trump suggested the White House should have a “say” in setting monetary policy.
Democrats, however, have defended the independence of the institution.
“An independent Fed is vital for a healthy economy – something that Trump has proved is not a priority for him,” senior Democratic Senator Chuck Schumer said on X in response to Trump’s criticism of Powell.
