Former President Trump launched another attack on Fed Chair Jerome Powell, branding him a “fool” while demanding immediate rate cuts despite 2.4% inflation. The Fed has maintained steady rates at 4.25%-4.5% and refuses to budge under political pressure. Trump’s criticism comes as the central bank prepares for its next policy meeting, with Powell standing firm on data-driven decisions. The brewing conflict between Trump and the Fed signals deeper economic tensions ahead.
Former President Donald Trump launched another blistering attack on Federal Reserve Chair Jerome Powell, calling him a “fool” for refusing to cut interest rates.
The latest outburst came after the Fed’s May 2025 decision to keep rates steady at 4.25%-4.5%, a move that clearly didn’t sit well with the former president.
Trump took to social media to blast Powell, claiming the Fed chief was acting “too late” and ignoring positive economic indicators.
His favorite talking point? The supposedly nonexistent inflation – though official data shows it’s running at 2.4% annually, still above the Fed’s 2% target.
The timing is interesting, coming right as the Bank of England decided to cut their rates.
Trump’s not-so-subtle message: everyone else gets it except Powell.
The Fed’s next decision on rates will come after their two-day policy meeting concludes on Wednesday.
Never mind that the Fed is supposed to be independent from political pressure – Trump wants those rates slashed now.
Powell and his team aren’t budging.
They’re watching and waiting, particularly concerned about how Trump’s new tariffs might affect inflation and growth.
In a recent Truth Social post, Trump incorrectly claimed gas prices were at $1.98 a gallon nationwide.
The Fed chair keeps emphasizing the importance of central bank independence, probably while reaching for the aspirin bottle every time Trump tweets.
Markets are caught in the middle of this spat, with many investors betting on rate cuts by July 2025.
Meanwhile, economists are warning about potential job losses and price increases coming down the pike, especially with those tariffs in play.
The whole situation has analysts worried.
They’re concerned that Trump’s public pressure campaign could shake confidence in U.S. monetary policy and the dollar itself.
Oil prices are down, and some grocery costs have dropped, but that’s not the whole story.
The Fed’s careful approach reflects their mandate to balance compound interest effects across the broader economy.
For now, Powell’s holding firm despite Trump’s demands and name-calling.
The Fed’s message remains clear: they’ll move when the data says it’s time, not when politicians start throwing tantrums on social media.
