Trump Prepares to Blame Powell for Economic Downturn

Former President Donald Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, blaming him for any potential economic downturn and pressuring the Fed to cut interest rates amid the implementation of new trade tariffs. Trump has openly called Powell a 'major loser' and accused the Fed of acting too slowly on rate cuts, while also suggesting that Powell acted politically to benefit the Biden administration. Market observers suggest Trump's strategy is to deflect blame from his own trade policies, particularly tariffs, by making Powell the 'fall guy' if the economy weakens. These attacks have raised concerns about the central bank's independence, with experts warning that Trump's rhetoric could undermine the Fed's credibility and effectiveness. Powell, meanwhile, has maintained a cautious approach, citing ongoing inflation risks and the uncertainty posed by new tariffs. The standoff has injected volatility into financial markets, with stocks, Treasurys, and the dollar reacting negatively to the public feud.