Washington, April 21 (HS): U.S. President Donald Trump once again criticized the Federal Reserve and its Chairman Jerome Powell. He warned that if the Fed does not cut interest rates immediately, the U.S. economy could head towards a recession.

On Monday, Trump wrote in a post on the Truth Social platform, The inflation rate is decreasing, as I previously predicted. There is no risk of inflation, but if 'Mr. Too Late' (a major failure) still hasn’t cut interest rates, the economy's pace could slow down.

Following this statement, there was further decline in the U.S. stock market. Investors already troubled by Trump's attacks on Powell became more anxious. The major S&P 500 index fell by up to 2% on Monday.

Trump is already unhappy with the Federal Reserve's 'wait and see' policy. Last Friday, one of Trump’s advisors indicated that the administration is considering options to remove Powell. This statement raised questions about the Fed's independence and increased investor concerns, especially as the U.S.-China trade war is also escalating.

Trump believes that high-interest rates make loans expensive, which affects trade and consumption. He wants an immediate cut in rates to boost the economy.

Hindusthan Samachar / Jun Sarkar