From CNBC: 2025-05-10 08:47:00

Federal Reserve Chair Jerome Powell is facing criticism from President Trump for being too slow to act on interest rates, a common issue among Fed leaders. Economists believe Powell may be labeled “Too Late” if he doesn’t make a move soon, despite current economic uncertainties and volatile policy mix. Powell is urged to maintain the status quo for now.

President Trump has been pressuring the Fed to cut rates, claiming inflation is under control. However, data doesn’t show significant inflation or economic slowdown yet, despite concerns over tariffs. Powell remains confident in the economy, dismissing the need for preemptive rate cuts based on current sentiment surveys. The Fed chair’s cautious approach may be risky.

Powell’s history of being late to act, particularly during the inflation spike in 2021, raises concerns about the Fed’s ability to make timely decisions. Critics argue that waiting for labor market confirmation before cutting rates may lead the Fed to miss the mark. With uncertainties surrounding tariffs and economic indicators, the Fed faces challenges in staying ahead of potential risks.

Read more: Powell may have a hard time avoiding Trump’s ‘Too Late’ label even as Fed chief does the right thing