Trump warned of an economic slowdown and called on the Federal Reserve to cut interest rates immediately

US President Trump warned that if the Federal Reserve does not immediately cut interest rates, the US economy may slow down. He also once again named and criticized Federal Reserve Chair Powell for his slow pace.

According to reports from Reuters and Bloomberg, Trump wrote on social media on Monday (April 21) : "Now all costs are falling as rapidly as I expected, and there is almost no inflation problem. But if 'Mr. Late' - the big loser - does not cut interest rates immediately, the economy may slow down."

Despite the recent decline in oil prices, the US consumer price index (CPI) for March showed that grocery prices still rose by more than 2% year-on-year and nearly 0.5% month-on-month.

Recently, Trump has been constantly pressuring the Federal Reserve and hinted that he might consider replacing Powell. The news raised concerns on Wall Street, and the US stock market dropped significantly on Monday, with the S&P 500 index falling by 1.5%.

He told the media when receiving Italian Prime Minister Meloni at the White House last week: "I'm very dissatisfied with him (Powell). I've already let him know." If I want him to go, he will leave soon - trust me.

Earlier this month, the European Central Bank announced that it would cut the benchmark interest rate to 2.25%. Trump was immediately dissatisfied that the Federal Reserve did not take similar actions and publicly pressured Powell on multiple occasions.

When Powell delivered a speech at the Chicago Economic Club last week, he emphasized that the Federal Reserve must ensure that tariffs do not trigger persistent inflation. He pointed out that in the context of an unclear policy outlook, the central bank will keep the current interest rate unchanged.

Powell also pointed out that Trump could not remove him from office and emphasized: "Our independence is granted by law." The regulations of the Federal Reserve clearly stipulate that the chairperson cannot be removed from office unless there are legitimate reasons.

White House National Economic Council Director Hassett confirmed that Trump is indeed studying whether he has the authority to remove Powell from his position.

Meanwhile, global central bank governors and economic policymakers will attend the spring meetings of the International Monetary Fund and the World Bank in Washington this week.