#TrumpVsPowell Trump is furious that Powell has ignored his frequent demands for a swift lowering of interest rates that would potentially make it easier for Americans to borrow to buy homes and could improve consumer sentiment and boost stocks. The Fed made three consecutive rate cuts last year after bringing inflation nearly to target. But it has paused the strategy amid concerns over growing economic uncertainty, which have been exacerbated by Trump’s volatile leadership since taking office less than three months ago.

On Thursday morning, a short-tempered Trump appeared incensed over Powell’s warning a day earlier that the tariffs would likely cause inflation and higher unemployment and that some of their burden “would be paid by the public.”

Powell’s speech to the Economic Club of Chicago was the clearest statement yet by a key financial official about the potential impact of Trump’s policies. He was stating what almost every serious economist believes about the impact of tariffs. But his comments conflicted with the president’s quixotic belief in the almost mystical power of taxing imports and his insistence that such a strategy will not spike prices and pass higher costs on to consumers.