Trump sarcastically blasts Powell for being "too late"! Will history and reality really repeat themselves? The Federal Reserve (FED) is caught in a dilemma.

The Chairman of the Federal Reserve (FED) Jerome Powell has recently been frequently criticized by President Trump, earning him the new nickname "Too Late." This is not just a war of words, but it also evokes the long-standing market impression of the Federal Reserve (FED) being "slow to react." This time, with the chaotic interplay of new tariff policies and economic signals, whether Powell's wait-and-see strategy is correct has become a focal point of high market attention.

Trump goes all out: Powell is a "clueless idiot"?

Right after the Federal Reserve decided to keep interest rates unchanged, Trump immediately fired back on Truth Social, calling Powell a "dummy" and added the label "Too Late Jerome Powell." He believes that current inflation is "virtually nonexistent" and that the Federal Reserve should have cut rates long ago.

It is worth noting that the core PCE index preferred by the Federal Reserve (FED) showed zero growth in March, making Trump's claims not entirely baseless. However, the new tariff measures he has implemented have only been in effect for about a month, and the economic impact has not fully manifested yet, so hastily cutting interest rates may be too premature.

History repeating itself? The Federal Reserve (FED) chairman is always "half a step slow".

Since the 1970s, Arthur Burns faced stagflation and hesitated to raise interest rates, followed by Alan Greenspan's sluggish response to the internet bubble, and Ben Bernanke's misjudgment of the severity of the subprime crisis, criticisms of the Federal Reserve (FED) for "moving too slowly" have never ceased.

"Whether it's raising or lowering interest rates, the Federal Reserve is always a step behind." Dan North, senior economist at Allianz Trade North America, said, "They want to wait for clear data before taking action, but by then the economy is usually already in recession."

The policy dilemma of being caught in between: Is doing nothing actually the safest choice?

Nevertheless, North also pointed out that in the current uncertain environment, keeping interest rates unchanged may be the "most correct mistake" for Powell.

On one hand, Trump's trade policy may trigger a rise in inflation, while on the other hand, there are still no obvious signs of a slowdown in overall economic activity. Under this dual risk, "inaction" seems to be the most conservative and rational choice.

Market signals are mixed: Economic performance is strong, but confidence is weakening.

According to the latest data, the overall economy of the United States has not shown significant signs of recession, and the actual activities in the manufacturing and service sectors remain resilient. However, cracks have begun to appear in market sentiment: nearly 90% of S&P 500 companies mentioned tariff risks during their earnings calls, and there are signs of a decline in the consumer confidence index.

Powell expressed full confidence at the press conference, believing that the current performance of the labor market still meets the goal of "maximum employment," and stated that the overall economy is "robust."

Not lowering interest rates in advance will miss a good opportunity? Market experts have differing opinions.

Market experts have differing opinions on not cutting interest rates in advance. Krishna Guha, global policy chief at Evercore ISI, pointed out that one of Powell's reasons is that "there's no harm in waiting," but this wait-and-see approach may come at a cost. He added that Powell also stated, "We don't know what the right approach is," which is more in line with the current situation.

Joseph LaVorgna, who previously served as an economic advisor to the Trump administration, is also not convinced. He believes that if the Federal Reserve waits until the job market deteriorates to cut rates, "it will be too late."

According to the old saying on Wall Street, "the job market is the last sector to know there is a recession." If the Federal Reserve uses this as the basis for decision-making, it may once again be "behind the curve."

In the midst of criticism from Trump, is Powell's choice to watch and see the changes correct?

Powell's current approach may have its rational basis, but market and political pressures are gradually intensifying. Historically, it has never been easy for the Federal Reserve (FED) to strike a balance between "stability" and "foresight." If it is indeed "too late," as Trump mentioned, this label may not belong solely to Powell but rather reflects a longstanding cultural issue within the Federal Reserve (FED).

This article criticizes Trump for saying Powell is "too late"! Will history and reality really repeat themselves? The Federal Reserve (FED) is caught in a dilemma. First appeared in Chain News ABMedia.