President Donald Trump derided Federal Reserve Chairman Jerome Powell once again Thursday, a day after the central bank voted to not lower rates because of economic uncertainty created by tariffs.
Trump said in a Truth Social post:
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and “eggs”) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF “TOO LATE!” ENJOY!”
The Fed on Wednesday voted to keep its benchmark interest rate between 4.25% and 4.5%, where it’s held the range in the three meetings this year since last cutting in December. This has frustrated the president, who wants the central bank to cut rates to counter a possible slowing economy due to the rollout of his trade policies.
The Fed said that it was keeping rates the same until the economic outlook becomes a bit clearer and that “the risks of higher unemployment and higher inflation have risen.” The central bank doesn’t want to slash rates if Trump’s tariffs end up sparking inflation.
Powell addressed Trump’s frequent criticisms and call to lower rates briefly in a news conference that followed the Fed’s decision, saying it would not impact the Fed’s job “at all.”
“We are always going to do the same thing, which is we are going to use our tools to foster maximum employment and price stability for the benefit of the American people,” Powell said. “We are always going to consider only the economic data, the outlook, the balance of risks and that’s it. That’s all we are going to consider.”
Trump troubled the markets last month, with investors fearing he would try to fire Powell before his term as chair ends in May 2026, a move that would threaten the independence of the Fed that many deem essential to the proper functioning of the U.S. financial markets. The comments helped fuel a market sell-off that came amid his implementation of tariffs.
But Trump in late April said he had “no intention” of firing Powell, comforting investors after he had also paused most of the highest “reciprocal” duties.
Just this past Sunday, Trump ruled out removing Powell when asked about it on NBC’s “Meet the Press.”
“No, no, no… why would I do that? I get to replace the person in another short period of time,” Trump said.
However, in the same interview he called Powell a “total stiff.” Trump initially appointed Powell during his first term as president, and former President Joe Biden reappointed Powell in 2022.
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