Trump Criticizes Powell's Fed Policies Amid Market Turmoil

Tensions have escalated between President Trump and Federal Reserve Chair Jerome Powell, as Trump publicly calls for Powell's removal and presses for immediate interest rate cuts, criticizing the Fed's pace compared to international counterparts. Powell, in response, has emphasized the importance of the Fed's independence and highlighted the economic risks posed by Trump's tariffs, particularly how they complicate the Fed's dual mandate of managing inflation and employment. Despite market volatility and mounting political pressure, Powell has signaled caution, noting that uncertainty around trade policy and tariffs makes forecasting and decisive monetary action challenging. Analysts point out that the Fed faces a dilemma: acting too early could risk inflation, while waiting for more data could mean responding too late to economic slowdowns triggered by tariffs. Investors remain uneasy as the Fed shows reluctance to intervene quickly, raising concerns about its resolve and independence under political scrutiny.