Trump Criticizes Jerome Powell for Fed's Decision to Hold Rates
President Donald Trump sharply criticized Federal Reserve Chair Jerome Powell following the Fed's latest decision to keep interest rates unchanged for the fourth consecutive time. Taking to social media late Wednesday, Trump called Powell a "real dummy" and accused him of causing the U.S. economy to lose hundreds of billions of dollars by refusing to lower rates.
Trump argued that interest rates should have been lowered by 2.5 percentage points, which he claims would have saved billions on the government's short-term debt obligations. "We should be 2.5 Points lower, and save $BILLIONS on all of Biden's Short Term Debt," he wrote in a post on his platform.
Powell's Steady Approach Met With Frustration
Jerome Powell, whose current term as Fed Chair expires in May 2026, emphasized a cautious stance following the Federal Open Market Committee's (FOMC) announcement. Powell stated, "For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policies." Despite pressure from Trump and others, Powell has consistently prioritized stability over aggressive rate cuts.
This steady approach keeps the federal funds rate roughly where it has been since December, a decision aligned with the central bank's goal to assess economic signals carefully before acting.
Trump Accuses Powell of Political Motivation and Eyed Fed Chair Replacement
Trump's criticisms were not unexpected; he has frequently targeted Powell for failing to cut rates amid economic challenges. Earlier on Wednesday, just hours before the Fed's announcement, Trump remarked outside the White House, "So we have a stupid person... Europe had 10 cuts, and we had none. I guess he's a political guy, I don't know. He's a political guy who's not a smart person, but he's costing the country a fortune."
The former president even joked about appointing himself to run the Federal Reserve, asserting, "I'd do a much better job than these people." Looking ahead, Trump has indicated plans to reveal his choice for Powell's successor once the chair’s term concludes next year.
Key Takeaways:
- Federal Reserve held interest rates steady for the fourth time in a row.
- Trump criticized Powell for delaying rate cuts and causing massive economic costs.
- Powell signaled patience to evaluate economic data before making policy changes.
- Trump plans to announce his pick for the next Fed Chair as Powell's term ends in 2026.
The ongoing tension between the White House and the Federal Reserve highlights the delicate balance the central bank must maintain amid competing economic pressures.
