U.S. President Donald Trump resumed his criticism of the Federal Reserve on Tuesday evening, claiming that Chair Jerome Powell was not doing a good job and that he knew more about interest rates.

Speaking at a rally in Warren, Michigan, commemorating his first 100 days in office, Trump did not mention Powell by name, but largely hinted at his past criticism of the Fed Chair.

"Interest rates came down despite the fact that I have a Fed person who's not really doing a good job, but I won't say that… I want to be very nice and respectful to the Fed," Trump said.

"You're not supposed to criticize the Fed, you're supposed to let him do his own thing, but I know much more than he does about interest rates, believe me."

Trump has repeatedly called on Powell to lower interest rates, having warned earlier in April that the Fed Chair risks a U.S. recession if he does not comply.

While Trump had later clarified that he did not intend to fire Powell, analysts had warned that his rhetoric sparked concerns over the independence of the Fed, which has historically been out of a President's control.

A supreme court decision on Trump's firing of two federal labor board members is now in focus, given that it could set a precedent for the president's control of federal agencies.

Commentators- specifically the Wall Street Journal's Nick Timiraos- also noted that Trump could be preparing to blame the Fed for the economic fallout of his sweeping trade tariff agenda
Powell- who was appointed by Trump during his first term- has so far largely ignored the President's calls for lower rates, stating that the central bank will keep rates steady in the near-term amid heightened economic uncertainty over Trump's tariffs. Weakening consumer sentiment, signs of sticky inflation, and a bitter trade war with China have also clouded the Fed's outlook.

Powell has also stated that he intends to serve the remainder of his term, which ends in May 2026.

The Fed cut interest rates by 1% through 2024 amid a sharp drop in inflation. But the central bank signaled a much slower pace of rate cuts for 2025, citing concerns over sticky inflation and economic uncertainty.

Still, any worsening in economic activity, due to Trump's policies, could push the Fed into cutting rates sooner and by a larger margin.

Source: Investing.com