President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell amid growing economic uncertainty, particularly concerning interest rates and the impact of tariffs.

On May 7, 2025, the Federal Reserve unanimously decided to keep interest rates steady at 4.25%–4.50%, marking the third consecutive meeting without a change. This decision comes despite Trump's public pressure for rate cuts, arguing that such measures are necessary to counteract economic slowdowns exacerbated by his administration's tariffs, including those as high as 145% on Chinese imports .

Trump has openly blamed Powell for potential economic downturns, suggesting that the Fed's reluctance to lower rates could hinder growth. He has also criticized Powell personally, labeling him "a total stiff," but recently stated he does not intend to remove Powell before his term ends in May 2026 . Legally, removing a Fed chair without cause is unprecedented and would likely face significant legal challenges .

Powell, for his part, has emphasized the importance of the Fed's independence and data-driven decision-making. He has stated that he does not seek meetings with presidents and remains committed to making policy decisions based on economic indicators rather than political pressure .

The Fed's cautious stance reflects concerns that premature rate cuts could exacerbate inflation, especially given the supply chain disruptions and increased costs resulting from the tariffs. While the economy showed strength in the April jobs report, economists warn that traditional labor indicators may not fully capture the lagging effects of tariffs, suggesting that the Fed may wait for clearer signs of economic weakness before adjusting rates .

As the next Fed meeting approaches in June, the central bank faces the challenge of balancing political pressures with its mandate to manage inflation and employment, all while maintaining its credibility and independence in a highly politicized environment.