Washington: US President Donald Trump on Thursday accused Jerome Powell, the Federal Reserve chairman, of 'playing politics,' criticizing him for maintaining high interest rates and suggesting he has the authority to dismiss him at will. Trump expressed his dissatisfaction with Powell, stating, "If I ask him (Powell) to, he'll be out of there. But I don't think he's doing the job. He's too late, always too late. Slow, and I'm not happy with him," while speaking to reporters in the Oval Office during a meeting with Italian Premier Giorgia Meloni. He further emphasized, "If I want him out, he'll be out of there real fast, believe me."

According to Anadolu Agency, Powell's term is set to continue through at least next year. However, Trump has previously displayed a disregard for regulations and norms concerning federal appointees in several cases. Trump accused Powell and the Federal Reserve of engaging in political maneuvering, asserting that "Interest rates should be down now."

Trump went on to criticize the Federal Reserve personnel, labeling them as "not very smart people." He argued that the Fed owes it to the American public to lower interest rates, claiming, "That's the only thing he's good for."

Trump's comments followed Powell's warning on Wednesday that Trump's tariffs are "highly likely" to cause a temporary rise in inflation. Powell stated, "The inflationary effects (of the tariffs) could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored."

Trump has previously urged Powell to cut interest rates and criticized his perceived delay in doing so. Prior to the presidential election last November, Trump, then a candidate, argued against lowering interest rates, suggesting that such action would benefit the Democrats, his political opponents.