Former President Trump launched a fierce attack on Fed Chair Jerome Powell, branding him a “fool” and “major loser” after the Fed kept rates steady at 4.25-4.50%. Despite March inflation hitting 2.4%, Trump falsely claimed there was virtually no inflation while demanding immediate rate cuts. Powell maintains a cautious approach amid economic uncertainty and mounting political pressure. The drama between these two power players keeps intensifying with each Fed meeting.
Former President Donald Trump launched a blistering attack on Federal Reserve Chair Jerome Powell, calling him a “fool” and “Mr. Too Late” after the Fed’s decision to maintain interest rates at their current level during the May 7, 2025 meeting.
Trump’s rage-filled posts on Truth Social didn’t stop there.
He falsely declared there was “virtually NO INFLATION” – despite March’s actual 2.4% rate – and branded Powell “a major loser” who needs to slash rates immediately.
The timing isn’t random.
Trump’s attacks on Powell align perfectly with the Supreme Court’s examination of presidential power over the Fed chair.
Trump’s escalating attacks coincide with a Supreme Court case examining presidential authority to fire the Fed chair.
Powell, meanwhile, keeps his cool.
He’s holding rates steady between 4.25% and 4.50%, citing decent economic data and a desire to assess the impact of Trump’s controversial tariff policies.
The Fed’s last rate cut happened back in December 2024, and Powell’s cautious approach is driving Trump up the wall.
The economic backdrop is messy.
Trump’s sweeping import taxes have markets in a tizzy, and the Bank of England already cut rates to 4.25% over tariff concerns.
Powell finds himself in an impossible spot – respond to economic data or appear to cave to political pressure.
Historical data shows that politically influenced central banks often struggle with dangerous inflation spikes.
The 1970s proved this point when Arthur Burns’ accommodative policies under Nixon’s pressure led to runaway inflation.
Variable rate adjustments typically follow these Federal Reserve decisions, affecting millions of borrowers nationwide.
Talk about being caught between a rock and a hard place.
Trump’s creating a heads-I-win-tails-you-lose scenario.
If rates drop, he’ll claim victory.
If they don’t, Powell’s the scapegoat.
In April, Trump even declared, “If I want him out, he’ll be out” – a threat that sent shivers through economic circles worried about Fed independence.
Analysts predict Trump might actually get his wish soon.
Economic indicators are wobbling, and Powell hints at possible rate cuts if the labor market weakens.
But for now, the Fed chair stands firm, even as Trump’s criticism reaches fever pitch.
The whole situation’s a powder keg of politics, policy, and personal attacks – with the U.S. economy hanging in the balance.
