Trump Escalates Criticism of Fed, Blames Inflation on Central Bank

Washington, DC - President Donald Trump has intensified his attacks on the Federal Reserve, accusing the institution of failing to address inflation and wasting time on non-core issues.

In a social media post on Wednesday, Trump called out Fed Chair Jerome Powell and the central bank for failing to "stop the problem they created" on inflation. He also criticized the Fed for its regulation of banks and its focus on diversity, equity, and inclusion (DEI), gender ideology, and climate change.

Trump pledged to tackle inflation by boosting American energy production, cutting regulations, balancing international trade, and revitalizing American manufacturing.

Clash Over Monetary Policy

The president's comments signal a potential clash between the administration and the Fed over the direction of monetary policy. Trump has repeatedly demanded lower interest rates and has indicated that he intends to pressure Powell.

Powell, however, has declined to comment on the president's statements, emphasizing the Fed's independence. He noted that the economic policies of the Trump administration could impact monetary policy but that the Fed will remain cautious in making any further decisions.

Concerns Over Trade and Immigration Policies

Powell cited trade tariffs, immigration, fiscal policy, and regulatory changes as areas that could influence Fed policy. He pointed out the potential for upward price pressure if the administration imposes tariffs on Mexico, Canada, and China.

Fed officials have expressed concerns that the new administration's trade and immigration policies could contribute to inflation. However, recent data suggests some improvement in the inflation picture.

Fed's Independence

Despite Trump's criticism, Powell reaffirmed the Fed's commitment to its mandate without political interference. He stated that the central bank will continue to focus on using its tools to achieve its goals.

Treasury to Lead Regulatory Reform

Trump also accused the Fed of doing a "terrible job" on bank regulation. He said the Treasury Department would lead efforts to reduce regulations and increase lending for businesses and individuals.