The White House has put Wall Street, Washington and the world through economic whiplash ever since Donald Trump announced its “Liberation Day” across-the-board tariffs.
Wednesday proved to be no different for the administration. In the Oval Office, the president slammed Federal Reserve Chairman Jerome Powell, whom he has assailed for not lowering interest rates.
“I haven’t called him, but I believe he’s making a mistake by not lowering interest rates,” he said. “He’s keeping rates too high.”
Trump nominated Powell to be the chairman during his first presidency and Powell became a favorite of Wall Street for his handling of the Covid-19 pandemic, but Trump disavowed him from the West Wing.
“He was recommended by a certain person that I’m not particularly happy with, but he will hopefully do the right thing,” he said.
Joe Biden re-nominated Powell, though Powell raised interest rates to curb inflation. But he earned high marks for accomplishing a “soft landing” of curbing inflation without causing an increase in unemployment.
Trump still sought to complain about Powell’s tenure under his predecessor.
“He historically has been late, except when it came to Biden,” he said.
Trump made the remarks in the Oval Office after the closing bell on Wall Street, but his latest seesaw on tariffs and trade suggests his administration cannot get its story straight.
Earlier in the day, Treasury Secretary Scott Bessent spoke at the Institute of International Finance, where he said that the administration hoped to build stronger relationships with allies.
Bessent, a founder of Key Square Group, delivered his address concurrent with the International Monetary Fund and the World Bank’s spring meetings.
“I wish to be clear: America first does not mean America alone,” he said. “To the contrary, it is a call for deeper collaboration and mutual respect among trade partners. Far from stepping back, America first seeks to expand US leadership and international institutions like the IMF.”
Bessent’s words sounded positively globalist. He even hinted at a willingness to work with China, which saw markets rally.
But during an earlier gaggle with reporters, Trump pulled the rug from under Wall Street.
