Trump ramps up attacks on Fed chair as 'major loser,' stocks fall again

President Trump escalated his attacks on Federal Reserve Chairman Jerome Powell Monday, dubbing him a “major loser” who is dragging his feet on lowering interest rates.

Stocks plummeted in early trading Monday, with the Dow Jones Industrial Average more than 2.5% before noon.

Mr. Trump, writing on Truth Social, pointed to declining prices for eggs and other goods to justify his demand. The central bank has been cautious about lowering rates, hoping to guide a soft landing after rampant inflation during the Biden years.

“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Mr. Trump wrote.

Mr. Trump is prodding Mr. Powell and the Fed in harsh terms as he tries to steer the economy through his aggressive trade actions.

The White House’s decision to impose a blanket 10% tariff on imports and 145% levy on Chinese goods is causing turmoil in the markets. Mr. Trump paused additional reciprocal tariffs on dozens of nations after it caused upheaval in bond markets.

The president thinks lowering interest rates would juice the economy while he conducts trade negotiations and pursues tax cuts with Republicans in Congress.

“Europe has already ’lowered’ seven times. Powell has always been ’To Late,’ [sic] except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?” Mr. Trump wrote Monday.

Mr. Powell’s term lasts until mid-2026.

The Fed is considered an independent body that makes economic decisions outside the whims of presidents. However, the Supreme Court is set to take up a case that could make it easier for presidents to fire commissioners of independent agencies.

“I don’t think that that decision will apply to the Fed, but I don’t know. It’s a situation that we’re monitoring carefully,” Mr. Powell recently told the Economic Club of Chicago. “Generally speaking, Fed independence is very widely understood and supported in Washington, in Congress, where it really matters.”

Mr. Powell also said Mr. Trump’s agenda could make the Fed’s job more difficult.

The central bank could be caught between controlling inflation and spurring economic growth due to tariffs and other economic policies, he said.

“If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close,” Mr. Powell said.