On Thursday morning, President Donald Trump took to social media to express his frustration with Federal Reserve Chairman Jerome Powell. This came just a day after the Federal Reserve decided to keep interest rates steady at between 4.25% and 4.5%. Trump called Powell a “fool who doesn’t have a clue” while also saying he liked him very much.
In his post on Truth Social, Trump criticized Powell for being “too late” in his actions, claiming that oil and energy prices were down, grocery costs were falling, and there was virtually no inflation. He argued that the economic situation was the opposite of what Powell suggested, insisting that the country was benefiting from tariff revenues.
The Federal Reserve has been cautious about lowering interest rates, citing concerns about rising unemployment and inflation risks. Powell emphasized that the Fed’s goal is to maintain maximum employment and price stability, and that decisions would be based solely on economic data and forecasts.
Trump has previously indicated that he would not reappoint Powell when his term ends in May 2026. In an interview earlier this year, he hinted that Powell might be acting to help Democrats by lowering interest rates. Powell has stated that the Fed is currently in a wait-and-see mode regarding the economic impacts of Trump’s tariff policies.
In April, Powell mentioned to the Economic Club of Chicago that it was wise to wait for more clarity on the economic situation. Trump responded the next day, criticizing Powell for being slow to act and suggesting that interest rates should have been lowered already.
During an appearance on NBC’s "Meet The Press," Trump reiterated his call for lower interest rates, saying it was already late for such a move. When asked if he planned to remove Powell before his term ended, Trump assured that he would have the chance to replace him soon enough.
This exchange highlights the ongoing tension between Trump and the Federal Reserve as economic conditions continue to evolve.
