President Trump expressed strong criticism of Federal Reserve Chairman Jerome Powell on Thursday, a day after the central bank decided to maintain interest rates.
“‘Too late’ Jerome Powell is a fool and has no clue,” Trump posted on his Truth Social Platform. “Otherwise, I really like him!”
He continued, “The trajectory of oil and energy, lowering nearly all costs (like groceries and ‘eggs’), is practically inflation-free, with tariff revenues flooding into the US – enjoy the exact opposite of ‘too late!’!”
The Fed’s interest rate committee held rates steady on Wednesday, with a range of 4.25% to 4.5%. This marked the third consecutive pause after similar decisions in March and January. In the latter half of 2024, the Fed had reduced rates three times.
During a press conference on Wednesday, Powell indicated that a robust economic foundation would help central banks understand how new trade, fiscal, and regulatory policies might evolve.
“The labor market is solid, and inflation is low. We can afford to be patient as developments unfold,” he stated after the announcement. “There’s no significant cost to waiting at this moment.”
Powell added, “There’s considerable uncertainty regarding the resolution of tariff policies and their implications for the economy, growth, and employment.”
Trump has consistently urged the Fed and Powell to lower interest rates, particularly as his administration faces economic challenges stemming from extensive tariffs.
“The Fed needs to lower that rate!!!” he tweeted last week.
In another post last month, he remarked, “This would be the ideal time for Fed Chairman Jerome Powell to cut interest rates. He’s always ‘lagged,’ but he could change that perception right now.”
However, Trump has modified his economic stance as markets adjusted amid the ongoing trade conflict, especially with China. Recently, he acknowledged that US consumers might feel the effects of tariffs through rising prices and suggested they might need to cut back on purchases.
The president’s dissatisfaction with Powell resurfaced last month when he questioned whether efforts would be made to remove him. Yet, he later clarified that he had no plans to fire the Fed chair.
