Trump calls Fed chair a "fool" for keeping interest rates steady

Published: Thursday, May 8, 2025 at 2:59 pm

Trump Slams Fed Chair Powell, Criticizes Interest Rate Stance

President Donald Trump has once again taken aim at Federal Reserve Chair Jerome Powell, labeling him a "fool" for maintaining steady interest rates. This latest criticism, posted on Trump's Truth Social platform, follows a pattern of disapproval regarding the Fed's monetary policy. Trump argues that Powell is acting "too late" in cutting the benchmark rate, despite economic data suggesting the U.S. economy is in relatively good shape.

The Federal Reserve last lowered its rate in December 2024, holding it steady since then. Powell has cited the need to assess the impact of Trump's economic policies, particularly his tariffs, on inflation and economic growth as a key factor in the decision. Trump, however, inaccurately claims there is "virtually NO INFLATION," despite inflation still exceeding the Fed's 2% target.

This criticism comes as the Bank of England took a different approach, cutting its main interest rate amid concerns about the global economic impact of Trump's tariff policies. Experts warn that political pressure on the Fed could backfire, potentially undermining confidence in U.S. policymaking and the dollar. Some analysts suggest that Trump's pressure may force Powell to act cautiously, potentially creating a "self-fulfilling prophecy" where the Fed is hesitant to act. The Fed's independence is crucial, allowing it to make decisions based on economic data, not political pressure, to maintain low inflation and full employment.

Keywords: Trump, Jerome Powell, Federal Reserve, interest rates, inflation, tariffs, Bank of England, economic growth, monetary policy, rate cuts, U.S. economy, Truth Social, inflation rate, economic policies, political pressure, Fed independence

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