President Donald Trump has hit back at Federal Reserve (Fed) Chairman Jerome Powell after Powell criticized Trump's tariff policies and warned of major risks to the economy. In a statement on social media, Trump labeled Powell "Too Late Jerome" and stated that he could be fired at any time.
Powell, in his recent speech, kept US interest rates at 4.5% despite pressure from various parties including the crypto investment community. He also warned that Trump's new tariffs, especially on China, could trigger 'stagflation', a situation where prices rise but economic growth slows. Powell said the Fed is always trying to strike a balance between maximum employment and price stability.
The inflation rate in the United States remains high with the latest figure showing 2.4%, above the Fed's 2% target. Some categories such as food are showing higher inflation rates. Powell has refused to cut interest rates for now, although some hope that the move will stimulate the economy and labor market.
Meanwhile, Trump has signaled that a new trade deal with China could be reached soon, although Beijing has yet to issue an official statement. Trump claimed that Chinese officials have shown interest in returning to talks and used that narrative to reassure markets.
Meanwhile, the crypto market remained calm with a total market cap of around $2.75 trillion. Bitcoin remained above $83,000, but failed to break through the $86,000 resistance. Analysts said that market sentiment still depends on Trump’s next statements and actions.
