Trump Blasts Powell As A 'Fool' After Fed Holds Rates Steady

Published: Thursday, May 8, 2025 at 12:30 pm

Trump Slams Powell Again After Fed Holds Interest Rates Steady

President Donald Trump has once again publicly criticized Federal Reserve Chairman Jerome Powell, this time after the central bank decided to hold interest rates steady. Trump, taking to Truth Social, called Powell a "FOOL" and claimed the Fed's decision was "TOO LATE." He cited falling oil and energy prices, low inflation, and tariff revenue as evidence against the Fed's stance.

The Federal Reserve, in its Wednesday meeting, maintained the federal funds rate target range at 4.25% to 4.5%, marking the third consecutive meeting without a rate change. The Fed acknowledged "solid" economic growth but also noted rising risks of higher unemployment and inflation. Despite concerns from analysts about a potential recession, Powell stated he hasn't seen weakness in economic data.

The article highlights the complex economic landscape, including the impact of the Trump administration's trade policies. Analysts are divided on the potential consequences, with some fearing slower growth and others worried about inflation driven by tariffs. Fed officials hold differing views, with some expecting a one-time price increase due to tariffs and others expressing concern about rising inflation expectations.

Powell, in his press conference, stated it was too early to assess the economic impact of tariffs and that Trump's criticisms wouldn't influence the Fed's monetary policy decisions. He emphasized the Fed's commitment to fostering maximum employment and price stability based solely on economic data. Trump's previous criticisms of Powell sparked speculation about his potential removal, which Trump has denied.

BNN's Perspective:

From BNN's Perspective, it's concerning to see a President publicly attacking the head of the Federal Reserve. While constructive criticism is healthy, these types of attacks can undermine confidence in the institution and potentially politicize monetary policy. The Fed's independence is crucial for maintaining economic stability, and it's important to allow them to make decisions based on data and economic outlook, not political pressure.

Keywords:

Donald Trump, Jerome Powell, Federal Reserve, interest rates, inflation, economy, tariffs, recession, unemployment, monetary policy, Truth Social, economic growth, stagflation, Fed meeting, price stability

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