[UNITED STATES] President Donald Trump reignited his criticism of Federal Reserve Chairman Jerome Powell on Tuesday, touting his economic agenda and trade policies during a rally near Detroit marking his 100th day back in office.
“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,” Trump said, taking a swipe at Powell while highlighting what he framed as economic progress under his leadership.
Although Trump earlier this month stated he had no plans to remove Powell, his renewed attacks have once again stirred uncertainty over the central bank’s leadership, rattling markets already uneasy about his aggressive tariff strategy.
The strained relationship between Trump and Powell mirrors their confrontations during Trump’s first term, when Powell resisted repeated calls from the White House to cut rates more swiftly. Appointed by Trump in 2018, Powell has consistently defended the Fed’s independence, insisting that monetary policy decisions must remain free of political interference. Yet, Trump’s latest comments suggest little has changed in their dynamic. Economists continue to warn that political pressure on the Fed could damage its credibility and unsettle financial markets.
“You’re not supposed to criticize the Fed,” Trump said. “You’re supposed to let him do his own thing — but I know much more than he does about interest rates.” The remarks came as part of a broader defense of Trump’s economic platform, particularly his sweeping tariffs, which he argued would spur domestic growth and bring manufacturing jobs back to the U.S.
Still, just hours before the event, Trump signed off on a series of modifications to his tariff plans, including a temporary two-year reduction on a 25% levy for certain auto parts used in U.S.-assembled vehicles. The changes reflect months of lobbying from automakers and suppliers, who warned that abrupt tariff hikes could upend already fragile supply chains still recovering from pandemic disruptions.
Groups such as the Alliance for Automotive Innovation had urged the administration to adopt a more gradual rollout, cautioning that sudden cost increases would lead to higher consumer prices. The concessions suggest Trump is willing to adjust parts of his protectionist agenda in response to economic pressures — even as his public rhetoric remains hardline.
Framing the policy shift as “a little flexibility,” Trump said the delay would give companies time to shift operations back to the U.S. — but issued a stern warning to those continuing to rely on imports. “We gave them a little bit of time before we slaughter them,” he said.
Recent polls indicate voter skepticism toward Trump’s economic plans, with concerns mounting that the tariff regime could push the economy toward recession and drive up prices. Consumer confidence in April dropped to its lowest level in five years.
While Trump maintains that his trade measures are a necessary component of his broader economic strategy, economists caution that the inflationary pressure from tariffs could undermine benefits from previous tax cuts. A report by the Peterson Institute for International Economics projected that the proposed auto tariffs could boost vehicle prices by 2–3%, disproportionately hitting middle-income households. With wage growth stagnating, Trump risks losing support among key working-class voters in swing states such as Michigan.
Despite dismissing unfavorable polling as biased, Trump used the Michigan rally to shore up support for his upcoming tax package, which builds on his 2017 cuts. The new bill includes proposals to eliminate taxes on tipped wages, Social Security income, and overtime pay. Trump also issued a veiled threat to Republican lawmakers who might resist the legislation, saying they should be challenged if they fail to back his agenda.
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