Trump calls Fed Chair Jerome Powell a 'FOOL who doesn't have a clue'

Published: Thursday, May 8, 2025 at 12:35 pm

Trump Slams Fed Chair Powell as a "Fool" After Interest Rate Hold

President Donald Trump has once again unleashed a scathing attack on Federal Reserve Chair Jerome Powell, labeling him a "FOOL" on his Truth Social platform. This latest outburst comes after the Federal Reserve announced it would hold interest rates steady for the third consecutive time, a move Trump has publicly opposed, advocating for rate cuts.

The Fed's decision, announced Wednesday, reflects a cautious approach amid a backdrop of slowing economic growth and persistent inflation. While inflation has cooled from its peak, the central bank cited insufficient data to warrant immediate rate reductions. Powell also acknowledged the rising risks of both higher unemployment and inflation, raising the specter of a potential stagflationary scenario.

The economic landscape presents a mixed picture. The U.S. economy contracted by 0.3% in the first quarter of 2025, while the labor market added a modest 177,000 jobs in April. Core inflation remains above the Fed's 2% target, further solidifying their cautious stance.

Adding to the complexity, the ongoing debate over tariffs, a policy championed by Trump, has entered the conversation. Powell acknowledged that potential changes in tariff policies could impact inflation, economic growth, and employment levels. Trump, in his social media post, countered this assessment, highlighting what he sees as positive economic indicators, such as falling oil prices and reduced inflation in certain areas.

This isn't the first time Trump has criticized Powell, having previously called him names and even floated the idea of firing him. Powell, however, maintains that Trump's comments do not influence the Fed's decision-making process, emphasizing their commitment to using economic data and outlook to foster maximum employment and price stability.

BNN's Perspective: While it's understandable that a President would have opinions on economic policy, the repeated personal attacks on the Fed Chair are unproductive. The Fed's independence is crucial for maintaining economic stability, and public confidence in the institution is paramount. A more constructive dialogue, focused on the economic data and potential policy impacts, would be more beneficial for the country.

Keywords: Donald Trump, Jerome Powell, Federal Reserve, interest rates, inflation, economy, stagflation, tariffs, economic growth, unemployment, Truth Social, rate cuts, core inflation, Personal Consumption Expenditures price index, economic policy

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