Trump warns US economy may slow unless Fed cuts rates

U.S. President Donald Trump warned on Monday that the country’s economy could slow unless the Federal Reserve cuts interest rates immediately, stepping up his criticism of Fed Chair Jerome Powell.

“There can be almost no inflation” due to falling energy and grocery prices, Trump wrote on social media. “But there can be a slowing of the economy unless Mr. Too Late, a major loser, lowers interest rates, now,” he added, referring to Powell.

Despite Trump’s claim, March Consumer Price Index data shows grocery prices rose over 2% year-on-year and nearly 0.5% from February.

Trump’s attacks on Powell have rattled financial markets, with the S&P 500 falling 1.5% on Monday amid speculation over Powell’s future. The criticism followed the European Central Bank’s rate cut last week, which Trump cited in his push for a similar move by the Fed.

The warning comes ahead of IMF and World Bank spring meetings in Washington, where global central bankers are set to discuss monetary policy.

Trump’s tariff hikes have raised concerns about inflation. In response, Powell said last week the Fed would wait for “greater clarity” before changing policy, and emphasized the central bank’s independence and legal protections.

N.Tebrizli