Trump calls Fed Chair Jerome Powell a 'fool' after central bank keeps rates steady

Published: Thursday, May 8, 2025 at 10:53 am

Trump Slams Powell Again After Fed Holds Interest Rates Steady

President Donald Trump has once again unleashed his criticism on Federal Reserve Chairman Jerome Powell, this time following the central bank's decision to hold interest rates steady. The Fed announced on Wednesday that it would maintain its benchmark interest rate in a range of 4.25% to 4.5%, a level it's held since December. This decision, driven by economic uncertainty stemming from tariffs, clearly irked Trump, who has repeatedly called for rate cuts.

Trump took to Truth Social to express his frustration, labeling Powell a "fool." He believes lower rates are necessary to counteract a potential economic slowdown, which he attributes to the impact of his own trade policies. The Fed, however, cited concerns about rising risks of both higher unemployment and inflation as reasons for maintaining the status quo.

In a press conference following the rate decision, Powell addressed Trump's criticisms directly. He emphasized that the Fed's decisions are solely based on economic data, the economic outlook, and the balance of risks, and that political pressure would not influence their actions. Powell reiterated the Fed's commitment to fostering maximum employment and price stability for the American people.

The situation highlights the ongoing tension between the President and the independent central bank. Trump's repeated attacks on Powell underscore his desire to influence monetary policy, while the Fed maintains its commitment to its independence and data-driven decision-making. This clash raises questions about the role of political influence in economic policy and the potential impact on the financial markets.

BNN's Perspective: This situation underscores the delicate balance between political influence and economic stability. While it's understandable that a President would want to see policies that benefit the economy, it's crucial that the Federal Reserve remains independent to make decisions based on the best economic data available, free from political pressure. Finding a middle ground that balances economic growth with responsible fiscal policy is key to a healthy economy.

Keywords: Donald Trump, Jerome Powell, Federal Reserve, interest rates, rate cuts, economic uncertainty, tariffs, inflation, unemployment, monetary policy, Truth Social, economic outlook, political influence, financial markets

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