Donald Trump warns of a ‘slowing’ US economy if US Fed Chairman Jerome Powell doesn't cut interest rates

United States President Donald Trump, in a Truth Social post on Monday, April 21, warned the people of the nation, along with global investors, that if the US Federal Reserve does not cut its key benchmark interest rates. 

Donald Trump also addressed the fact that many people in the industry have sided with his stance and called for a rate cut in the US economy.

“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” said Trump in his Truth Social post.

Key Metrics

Trump also highlighted that the key metrics, like the cost of energy, along with food prices, and inflation, which are used to determine the key benchmark interest rate for the US, are all ‘substantially lower’, providing an opportunity to the US Federal Reserve for an interest rate cut. 

“Preemptive Cuts in Interest Rates are being called for by many. With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other things trending down, there is virtually No Inflation,” said Trump in his post.

He also said there can be “no inflation” in the US economy, as the cost trend is downward. Trump also questioned the US Federal Reserve Chairman for being late in reducing the lending rates, where other economies like the European Central Bank (ECB) have lowered it seven times. 

“Europe has already ‘lowered’ seven times. Powell has always been ‘To Late,’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?” said Trump in his post.

Trump's comments on the rate cut come ahead of the International Monetary Fund and World Bank spring meetings, where central bankers and economic policymakers worldwide are set to meet.

“I’m not happy with him. I let him know it. And oh, if I want him out, he’ll be out of there real fast, believe me,” Donald Trump told the reporters, during a meeting with Italian Prime Minister Giorgia Meloni, cited the news agency Bloomberg.