That jerk will be gone soon: Trump slams Fed Chair Powell in Detroit speech

US President Donald Trump renewed his attack on Federal Reserve Chief Jerome Powell, accusing him of undercutting economic gains by refusing to move faster on interest rate cuts.

Speaking at the Detroit Economic Club during a visit to Michigan, Trump said strong market performance should prompt the central bank to ease borrowing costs, not tighten them. "If you announce great numbers, they raise interest rates," Trump said. "When the market goes up, they should lower rates."

It was only after laying out that argument that Trump turned his fire directly on Fed Chair Jerome Powell.

Trump said that mortgage rates are declining and "that's not with the help of the Fed." "If I had the help of the Fed, it would be easier, but that jerk will be gone soon," Trump said, as he escalated his long-running feud with the central bank chief.

Trump has repeatedly clashed with the Fed Chief over its rate strategy, pressing for faster cuts to boost growth and manufacturing. He argues that lower rates would supercharge investment and help ease pressure on consumers, even as the Fed remains focused on keeping inflation under control and maximising employment.

The remarks came during a trip to highlight Trump’s manufacturing push and countering anxiety over job growth. The US President toured a Ford plant in Dearborn that produces the F-150 pickup before addressing business leaders in Detroit.

Earlier in the day, Trump accused Powell of either being "incompetent" or "crooked," referencing cost overruns linked to a renovation of the Fed’s Washington headquarters — an issue now under Justice Department scrutiny.

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Jerome Powell confirmed that the US Justice Department has opened a criminal investigation tied to his past Senate testimony on renovations at Federal Reserve office buildings, he said on Sunday.

He linked the investigation directly to President Donald Trump’s repeated complaints that the Fed has been too slow to cut interest rates.

"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best judgment of what serves the public, rather than following the president’s preferences," Powell said in a video statement.

"No one — certainly not the chair of the Federal Reserve — is above the law," he said. "But this unprecedented step must be viewed in the broader context of the administration’s threats and sustained pressure."

Powell is set to stand down in May and Trump is expected to name a successor as chair by the end of the month.

- Ends

With inputs from agencies

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