But many economists warn that by attacking the Fed for raising rates, Trump is actually putting pressure on the central bank to raise rates to demonstrate its independence from political considerations.
In an appearance earlier this month, Powell cited strong annual economic growth above 3 percent and unemployment at a near five-decade low of 3.7 percent.
The benchmark rate, now at 2 to 2.25 per cent, is within a quarter of a percentage point of the bottom of the Fed's range for neutral, but is also several quarter-point rate hikes below the mid-point estimate of 3 per cent. Furthermore, Powell states that the economy is growing "well above most estimates" and that "there is a great deal to like about this outlook".
But he cautioned that things could turn out a lot differently than the Fed expects.
During the interview, the president deflected blame for a slowing USA economy, instead blaming Powell's decision to hike interest rates and other moves.
"Our path of gradual increases has been created to balance these two risks, both of which we must take seriously" said Powell in prepared remarks at the Economic Club of NY.
Powell noted that the economy is "near max employment, price stability" and major asset class valuations are "not far in excess", which could mean there may be more room to run for USA equities.
"Fed policy makers appear to have made a decision to strike a somewhat more cautious tone as of late". Financial markets have swooned in recent weeks, erasing much of the gains over the past year.
But policymakers also say they may soon begin to give the public fewer clues about their plans, striking language from future statements about "further gradual increases" and instead keeping a close eye on developments in the economy.
Investors seemed to interpret Powell's comments as a sign that the Fed, which is widely expected to raise rates again at a meeting next month, may now only hike rates once or maybe twice at most in 2019 as opposed to earlier forecasts of three or four hikes. Any such slowdown - or pause - in its rate hikes would be welcome news for a stock market that has been battered by fears that the Fed's continued credit tightening could end the long bull market. Last month, Mr Powell said the Fed still had a "long way" to go before it reached that equilibrium. Stocks plummeted in response.
Though Mr Powell's comments were markedly different from his characterisation of Fed policy last month, he left ample room for the central bank to continue raising rates, depending on the economy's performance.
Mr. Powell flagged rising indebtedness and deteriorating loan quality among some US businesses as top vulnerabilities within the USA financial system, but otherwise described such risks as moderate.
"What a difference having a written and carefully vetted speech makes with respect to speaking freely and without a script, " Roberto Perli, a former Fed economist and partner at Cornerstone Macro LLC in Washington, told clients on Wednesday.