What’s Behind Trump’s Rage at Fed Chair Powell’s Rate Stance?

The crypto market is 0.96% higher over the last 24 hours and Trump‘s push for lower rates clashes with Powell’s cautious stance. What‘s driving Trump’s fury？

Trumps Call for Action

Trumps frustration centers on the Feds inaction. Interest rates have held steady at 4.25-4.5% since January 2025, per Federal Reserve data.

Trump argues Powell should have cut rates earlier to boost growth. On April 17, he blasted Powell on social media:

“Powells termination cannot come fast enough!”

He‘s furious the Fed hasn’t slashed rates, pointing to the European Central Bank (ECB), which has cut rates repeatedly.

Trump ties his case to recent wins—like a tariff rollback on Chinese tech imports announced March 24, 2025.

That move, he claims, dropped oil and grocery prices, including eggs, and demands rate cuts to amplify the gains.

Data backs his growth focus. U.S. equities rose after the tariff shift, with markets reacting positively on March 25, 2025.

But the Feds rate range—unchanged at 4.25-4.5% for three months—frustrates him. He sees Powell as a roadblock.

Yet, Powells reluctance to act has Trump fuming, believing rate cuts could amplify these gains.

Powells Measured Response

Powell, speaking at the Economic Club of Chicago on April 16, 2025, defended the Feds stance. He stressed the need for more data before adjusting rates.

“We are well positioned to wait for greater clarity,” Powell said, citing recent market volatility.

The S&P 500‘s 2.3% weekly fluctuation, per Yahoo Finance, reflects investor unease over Trump’s tariff policies.

Powell warned these tariffs, affecting 40% of U.S. imports, could hike inflation by 0.5-1%, per a 2024 Peterson Institute study.

Powell also flagged job risks. Tariffs could cut 500,000 jobs by 2026, per the National Bureau of Economic Research.

He called the market‘s reaction “natural” and argued the Fed shouldn’t rush to intervene.

His stance isnt new. The Fed kept rates flat all year, eyeing economic signals. Powell called recent market swings—Bitcoin hitting $85,692 this week—a “natural reaction” to trade policy shifts, not a reason to act.

The tariff saga adds fuel. On March 24, 2025, Trump rolled back tariffs on Chinese tech—like smartphones and computers.

Markets cheered briefly, with Bitcoin steadying and equities up by March 25. But Trump later clarified: those goods just shifted tariff categories, not off the hook.

Powell pounced, calling the tariff approach “a complete mess” in his Chicago speech. He fears broad tariffs on trade partners could hike inflation, hitting consumers hard.

The ECB‘s rate cuts only sharpen the contrast. Trump sees them as proof Powell’s behind. Powell sees trade chaos as reason to wait.

What Next？

The feud reflects deeper tensions. Trumps push for rate cuts aligns with his economic agenda, backed by his supporters.

Trump‘s rate-cut demands clash with Powell’s caution, and the U.S. economy hangs in the balance.

Rates at 4.25-4.5% signal stability for now, but tariff uncertainty looms. Markets reflect the unease—Bitcoin‘s 7% climb this week shows crypto’s volatility, while equities waver on trade news. The White House wants growth now. The Fed wants data first.