Trump Criticizes Fed Chair Powell, Urges Faster Rate Cuts Without Firing

President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, labeling him a "numbskull" and urging the Fed to cut interest rates by a full percentage point to reduce the government's debt servicing costs amid moderating inflation. Despite his harsh rhetoric and earlier threats to fire Powell, Trump confirmed he does not plan to remove him from his position, acknowledging the risks such a move could pose and noting the Fed's legal autonomy affirmed by the Supreme Court. Trump hinted he might exert pressure to force the Fed to act on rate cuts but also expressed openness to rate hikes if inflation worsens. His comments have impacted financial markets, with stock indices and cryptocurrencies like Bitcoin and Ethereum experiencing gains following his assurance of Powell’s continuation. Speculation about a potential new Fed Chair nominee remains, contributing to global market uncertainty and investor caution, especially regarding emerging markets and currency fluctuations. Overall, Trump's stance underscores ongoing tensions between the administration and the Federal Reserve as the central bank prepares for upcoming interest rate decisions.