On Monday (April 21), US President Trump once again fired shots at the Federal Reserve. He posted on social media demanding an immediate interest rate cut and harshly criticized Federal Reserve Chairman Powell for his slow response, which may drag down the US economy. The intense confrontation between the president and the central bank has triggered financial market turbulence and further influenced the key choices for the direction of the US economy.

The intense confrontation between the president and the central bank

Trump unleashes all his firepower on 'Truth Social': inflation risk has subsided, but economic slowdown is imminent! Unless' Mr. Too Late '(implying Powell) takes action now, we will pay a painful price.

This statement directly points to the sensitive moment before the Federal Reserve's May interest rate decision. Analysts point out that this is already Trump's 16th public pressure on the Federal Reserve, and his attempt to intervene in the independence of monetary policy is causing panic on Wall Street.

Economic concerns behind policy differences

The Trump administration believes that a rapid interest rate cut can alleviate the impact of its tariff policy on the economy and avoid an economic hard landing. However, the decision-makers of the Federal Reserve are concerned that import tariffs may push inflation back to 4% or even higher, so they insist on a "wait-and-see" strategy.

Chicago Fed President Goolsby emphasized in a CNBC interview, "We need to assess the chain reaction of tariffs on the supply chain, as reckless action could trigger more persistent inflation

Market volatility exacerbates economic uncertainty

The president's tough stance immediately caused a stir in the market. The S&P 500 index plummeted 2% on the same day, US bond yields continued to rise, and consumer confidence index also fell to a three-month low.

At the same time, the latest data from World Enterprise Research shows that the leading indicator fell by 0.7% in March, creating a dual pressure of weak manufacturing and declining stock markets, prompting economists to raise the probability of a US economic recession to 35%.

summarize

As the Federal Reserve's interest rate meeting approaches on May 6th, this "rate cut game" has evolved into a major crisis for US economic decision-makers. Trump's continuous challenge to the independence of the central bank not only threatens the stability of the $23 trillion treasury bond bond market, but also is more likely to reshape the trust foundation of global investors in the U.S. financial system. Under the dual risks of inflation fog and economic slowdown, every decision made by the Federal Reserve will affect the fate of the US economy in 2025.