Trump Criticizes Powell Again, Urges Bold Rate Reductions and Short-Term Debt Approach

Trump Criticizes Fed Chairman Powell’s Monetary Policy

President Trump renewed his criticism of Federal Reserve Chairman Jerome Powell on Wednesday, taking aim at the Fed’s stringent monetary policy and advocating for significant interest rate reductions to lower government borrowing costs.

“He’s a politician and not a smart person,” Trump remarked to reporters during a ceremony at the White House.

The former president defended the state of the economy, claiming it is performing well despite the Fed’s elevated interest rates. He urged central banks to lower their key rates by 2.5 percentage points. The Fed has maintained its target rate between 4.25% and 4.50% since December 2024, right before Trump assumed office.

Alongside his call for tax cuts, Trump outlined a short-term borrowing plan aimed at saving taxpayers money.

“What I’m trying to do is go for a very short term, like six months, seven months, eight months, etc. Just wait for this guy to come out, lower the fees, and look for the long term,” Trump stated. “Our country is on track, and we have a strong appetite for our debts.”

Trump persisted in his personal criticisms of Powell, labeling him a “silly person” and predicting that the Fed would not lower interest rates after their policy meeting later that day.

“He’s not a smart guy. If there’s inflation in six or nine months… I’ll raise the fee,” Trump continued. “I think he’s a politician. By not acting smart, he’s costing the country a lot of money.”

Moreover, Trump criticized President Biden for reappointing Powell for a second term and expressed dissatisfaction with former Treasury Secretary Steve Mnuchin for initially recommending Powell’s appointment.

“I would never have reappointed him. Biden did, and I don’t understand why. I think he was a Democrat. Mnuchin gave me great advice on this,” Trump commented. “It was bad advice—he did a poor job.”

Reflecting on his first term, Trump claimed his predictions about Powell were accurate.

“Every time I said something, I was right, he was wrong,” Trump asserted. “Maybe I should take a position at the Fed. Am I allowed to appoint myself? I would handle it much better than those in charge.”

Additionally, Trump speculated that Powell’s hesitance to cut interest rates was linked to personal animosity.

“I don’t think he’s that political. I think he dislikes me. But that’s okay. He’s been called names in books about me. I was kind to him,” Trump remarked, recalling their past interactions. “‘Let’s have dinner; it’s too late.’ I’m going to be the one to reach out in my own way.”