Trump Criticizes Fed Chair Over Interest Rates

President Donald Trump has sharply criticized Federal Reserve Chairman Jerome Powell for choosing not to cut interest rates this month, which has paused a trend of previous quarter-point reductions.

On Truth Social, Trump expressed his frustration, saying, “Jerome ‘Too Late’ Powell has again refused to cut interest rates, even though there is absolutely no reason to keep them this high. He is harming our country and national security. Since even this idiot admits that inflation is no longer a problem or threat, interest rates should be significantly lowered.”

Trump argued that Powell’s decision is costing the nation hundreds of billions annually in “totally unnecessary and unsolicited interest.”

The president voiced his belief that the U.S. should have the lowest interest rates globally, attributing this to the revenue flowing into the country from tariffs. He noted that other countries benefit from lower interest rates simply because “the United States allows it.”

He mentioned that while other nations pay tariffs to the U.S., they still maintain “significant trade surpluses” and hinted at raising tariffs if the Fed does not act on interest rates. Following three consecutive cuts in September, October, and December, the current rates held steady at 3.5% to 3.75% as of Wednesday.

Trump stated, “In other words, I’ve been very kind, kind, and gentle to countries around the world. With the flip of a pen, billions more will come into the United States and these countries will have to make money the old-fashioned way, not on our backs.” He added, “The Fed should slash interest rates now! Tariffs have made America strong and powerful again, far stronger and more powerful than any other nation. We should pay lower interest rates than any other country in the world!”