US President Donald Trump on Thursday accused Jerome Powell, the Federal Reserve chairman, of "playing politics," criticizing him for keeping interest rates high and suggesting he has the power to dismiss him at will.
"If I ask him (Powell) to, he'll be out of there. But I don't think he's doing the job. He's too late, always too late. Slow, and I'm not happy with him," Trump told reporters in the Oval Office while hosting Italian Premier Giorgia Meloni. "If I want him out, he'll be out of there real fast, believe me."
Powell's term runs through at least next year, but in several cases Trump has shown indifference to regulations and norms for federal appointees.
"We have a Federal Reserve chairman that is playing politics," Trump claimed. "Interest rates should be down now."
Federal Reserve personnel are "not very smart people," he alleged.
"The Fed really owes it to the American people to get interest rates down," Trump continued. "That's the only thing he's good for."
Trump's remarks came after Powell warned Wednesday that Trump's tariffs are "highly likely" to cause at least a temporary rise in inflation.
"The inflationary effects (of the tariffs) could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored," Powell said.
Trump previously urged Powell several times to cut interest rates and criticized his "lateness" in cutting rates.
Ahead of the presidential election last November, then-candidate Trump said Powell should not lower interest rates, claiming that doing so would "help the Democrats," his political opponents.
