Trump Criticizes Fed’s Powell Over Interest Rates

Former President Donald Trump has expressed strong disapproval of Federal Reserve Chairman Jerome Powell, claiming significant damage was done by not lowering interest rates after recent inflation data fell short of expectations.

According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) increased by 0.2% in July, resulting in an annual rise of 2.7%. These figures were slightly below what analysts had anticipated, with Dow Jones projecting a 0.2% increase for July and a 2.8% increase year-over-year.

The CPI is determined by surveying the price changes in a selection of goods.

Core inflation, which excludes food and energy prices, saw a 0.3% increase last month, bringing the year-over-year rise to 3.1%. The Fed regards core CPI as a more accurate measure of long-term inflation trends, and this was the largest increase since January.

Trump continued his criticism of Powell, stating that he has delayed necessary interest rate cuts. In a post on Truth Social, he commented:

“Jerome’s late on lowering rates. The damage he’s caused is beyond measure. Fortunately, the economy remains strong despite Powell and his committee’s complaints. I’m considering letting a major lawsuit against Powell move forward due to his poor management of the Fed, which has misallocated funds.”

Trump also contended that tariffs have not contributed to inflation, challenging conventional economic views. He argued:

“Tariffs have brought in trillions to our economy and haven’t led to inflation or any other problems. In fact, most consumers don’t end up paying these tariffs; it’s businesses and foreign governments footing the bill. Goldman Sachs’ forecasts have missed the mark consistently, and maybe David Solomon should stick to being a DJ instead of trying to play economist.”

White House Press Secretary Karoline Leavitt remarked that the latest CPI report shows inflation is stable and supports Trump’s efforts to alleviate costs for American families and businesses. She noted that data continues to contradict previous criticisms of Trump’s tariffs, which have generated significant revenue, and highlighted rising small business optimism.

At a recent event, another speaker criticized the Fed for lacking initiative in lowering interest rates and claimed Powell’s stance on tariffs as a cause of inflation was misguided.