Sen. Elizabeth Warren (D-MA) criticized President Donald Trump on Thursday after he called for the Federal Reserve to cut interest rates – seven months after Warren told the Federal Reserve the same.

Warren appeared on CNBC on Thursday and said that Trump was risking a market “crash” after he posted on Truth Social that the Federal Reserve chairman’s “termination cannot come fast enough!” Trump has expressed frustration with the Fed chairman, Jerome Powell, in recent days over the level of the federal funds rate.

Warren said that Trump’s post was a threat to fire Powell. As an independent agency, the Federal Reserve’s chairman can only be removed by the president “for cause,” according to a 1935 Supreme Court ruling. “For cause” is typically interpreted to exclude disagreements over monetary policy.

“Understand this: if Chairman Powell can be fired by the president of the United States, it will crash the markets in the United States,” Warren said. “The infrastructure that keeps this stock market strong – and therefore a big part of our economy strong, and therefore a big part of the world economy strong – is the idea that the big pieces move independent of the politics, that somebody is making his/their/her best decisions economically and independently.”

“If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn’t distinguish us then from any other two bit dictatorship around the world,” she added.

Under the Biden administration, Warren, now the top-ranking Democrat on the Senate Banking Committee, repeatedly pushed Powell to cut interest rates despite high levels of inflation. She argued that interest rates needed to come down to make housing more affordable.

In one of those letters sent in September, Warren pushed the Federal Reserve to cut the federal funds rate by “75 basis points.” “If the Fed is too cautious in cutting rates, it would needlessly risk our economy heading towards a recession,” the letter said.

Trump on Thursday appeared to vent in a Truth Social post about the federal funds rate, which is set by the Federal Open Market Committee and influences other interest rates. The president suggested that Powell was acting late to cut rates as the European Central Bank prepares to cut its own interest rates.

“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Trump posted. “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS.”

“Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!” Trump wrote.

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Sen. Elizabeth Warren (D-MA) criticized President Donald Trump on Thursday after he called for the Federal Reserve to cut interest rates – seven months after Warren told the Federal Reserve the same.

Warren appeared on CNBC on Thursday and said that Trump was risking a market “crash” after he posted on Truth Social that the Federal Reserve chairman’s “termination cannot come fast enough!” Trump has expressed frustration with the Fed chairman, Jerome Powell, in recent days over the level of the federal funds rate.

Warren said that Trump’s post was a threat to fire Powell. As an independent agency, the Federal Reserve’s chairman can only be removed by the president “for cause,” according to a 1935 Supreme Court ruling. “For cause” is typically interpreted to exclude disagreements over monetary policy.

“Understand this: if Chairman Powell can be fired by the president of the United States, it will crash the markets in the United States,” Warren said. “The infrastructure that keeps this stock market strong – and therefore a big part of our economy strong, and therefore a big part of the world economy strong – is the idea that the big pieces move independent of the politics, that somebody is making his/their/her best decisions economically and independently.”

“If interest rates in the United States are subject to a president who just wants to wave his magic wand, this doesn’t distinguish us then from any other two bit dictatorship around the world,” she added.

Under the Biden administration, Warren, now the top-ranking Democrat on the Senate Banking Committee, repeatedly pushed Powell to cut interest rates despite high levels of inflation. She argued that interest rates needed to come down to make housing more affordable.

In one of those letters sent in September, Warren pushed the Federal Reserve to cut the federal funds rate by “75 basis points.” “If the Fed is too cautious in cutting rates, it would needlessly risk our economy heading towards a recession,” the letter said.

Trump on Thursday appeared to vent in a Truth Social post about the federal funds rate, which is set by the Federal Open Market Committee and influences other interest rates. The president suggested that Powell was acting late to cut rates as the European Central Bank prepares to cut its own interest rates.

“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’ Trump posted. “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS.”

“Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!” Trump wrote.

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