With the Federal Reserve’s interest rate decision hours away, President Donald Trump renewed his sharp criticism of Fed Chair Jerome Powell. Speaking near the White House, Trump called Powell “stupid” and expressed doubt that the Fed would lower rates.
Trump argued that the Fed’s key borrowing rate should be lowered by at least two percentage points. He pointed out that Europe has cut rates multiple times, while the U.S. has yet to reduce borrowing costs.
“So we have a stupid person. Frankly, you probably won’t cut today,” Trump said. “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.”
Fed’s Cautious Stance on Interest Rates
Market expectations indicate no rate cut at the current meeting, with a potential move deferred to September. The Fed’s target range remains 4.25%-4.50%. Powell and his colleagues have expressed caution due to economic uncertainties, including the unknown long-term effects of Trump’s tariffs.
Trump claimed the elevated interest rates are costing the U.S. “hundreds of billions” in financing expenses. He maintained that inflation has not surged and accused Powell of refusing to ease rates.
“If he’s worried about inflation, that’s OK. I understand that. I don’t think there’s going to be any. So far there hasn’t,” Trump said.
“But now we have a man that just refuses to lower the Fed rate, just refuses to do and he’s not a smart person,” Trump added. “I don’t even think he’s that political. I think he hates me, but that’s OK.”
Political Tensions and Future Fed Leadership
Powell recently met with Trump at the White House, but details were not disclosed. Powell and the Fed have insisted they will remain independent and resist political pressure, despite mounting criticism from the administration and Vice President JD Vance.
Trump also joked about appointing himself as Fed chair, saying, “I’d do a much better job than these people.”
Powell’s term ends in May 2026, and Trump has announced plans to nominate a successor soon.
What The Author’s Thinks
Central banking thrives on independence, expertise, and long-term economic stability, not political grandstanding. The repeated public attacks on Fed Chair Powell by President Trump risk undermining confidence in the institution at a critical moment. While rate decisions are complex and carry widespread impacts, using them as political weapons may do more harm than good. Maintaining respect for the Fed’s role and process is crucial for the country’s economic health.
Featured image credit: Gage Skidmore via Flickr
For more stories like it, click the +Follow button at the top of this page to follow us.