President Donald Trump took another swipe at the Federal Reserve on Tuesday during a rally in Michigan marking the 100th day of his second term.
Stopping short of mentioning Fed Chair Jerome Powell by name, Trump said, “Inflation is basically down and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job, but I won’t say that,” Trump told supporters at Macomb Community College, just north of Detroit. “I want to be very nice and respectful to the Fed.”
The president continued, “You’re supposed to let him do his own thing, but I know much more than he does about interest rates, believe me.”
Associated Press
Why It Matters
In recent weeks, Trump has expressed growing frustration with the Federal Reserve’s reluctance to continue cutting short-term interest rates. The president believes that such cuts are necessary given what he describes as a lack of inflationary pressure in the economy.
​As of Monday, the Federal Reserve’s effective federal funds rate stands at 4.33 percent, within the target range of 4.25 percent to 4.50 percent. This benchmark rate influences various interest rates across the economy, including those for mortgages, savings accounts and loans.
What to Know
Last week, Trump walked back his previous statements about Powell that had fueled speculation about Powell’s job security and contributed to a stock market downturn.
After previously saying that Powell’s “termination” couldn’t come fast enough, the president said, “I have no intention to firing him. I would like to see him be a little more active in terms of his idea to lower interest rates. This is the perfect time to lower interest rates. If he doesn’t, is it the end? No, it’s not.”
Trump’s frustration largely stems from his belief that inflation is no longer a problem, saying, “we have essentially no inflation,” despite the Fed’s continued caution amid rising economic uncertainty driven in part by Trump’s own tariff policies. The Fed Chair has warned that Trump’s sweeping tariffs could fuel inflation, making it less likely the Fed will lower rates anytime soon.
Though Trump and his economic advisers have claimed they want longer-term interest rates to drop to ease borrowing costs for Americans, Powell has clarified that the Fed only controls short-term rates and has limited influence over long-term borrowing.
Trump’s rally just outside Detroit — his largest political event since returning to the White House — largely sidestepped two major issues that have shaken Michigan: the economic fallout from his aggressive trade tariffs and his combative stance toward neighboring Canada. The rally speech also comes amid the president’s slipping poll numbers and approval ratings.
Trump also used his speech to double down on defending his administration’s steep tariffs on automobiles and auto parts — even as the White House announced earlier that day it would begin easing some of those trade measures.
What People Are Saying
Trump said earlier this week about Powell, “If I want him out, he’ll be out of there real fast, believe me,” Trump told reporters in the Oval Office during a meeting with Italian Prime Minister Giorgia Meloni. “I’m not happy with him.”
Daniel Hornung, former Deputy Director of the National Economic Council, said in a statement shared with Newsweek in March: “The Fed raising its near-term inflation projection and lowering its projection for economic growth is all about tariffs and policy uncertainty. These are the major factors standing in the way of interest rates coming down and leading forecasters to raise their recession probabilities.”
Democratic National Committee (DNC) Chair Ken Martin said in a statement after Trump’s speech, “Trump’s pathetic display tonight will do nothing to help the families he started screwing over 100 days ago. Michiganders and the rest of the country see right through Trump, and as a result, he has the lowest 100-day approval rating in generations. If he’s not already terrified of what the ballot box will bring between now and the midterm elections, he should be.”
What Happens Next
Powell was first nominated by Trump during his first term in 2017 and reappointed by former President Joe Biden in 2022. Powell’s current term as Fed chair runs through May 2026.
Update: 4/29/25, 7:42 p.m. ET: This article has been updated with additional information and remarks.
Update: 4/29/25, 8:13 p.m. ET: This article has been updated with additional information and remarks.
