President Donald Trump lashed out at Federal Reserve Chair Jerome Powell early Thursday, labeling him a “fool” for holding interest rates steady, and blaming the decision on Powell’s failure to recognize the benefits of Trump’s tariff policies.
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump wrote on Truth Social. “Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF ‘TOO LATE!’ ENJOY!”
The Federal Reserve on Wednesday opted to keep its primary interest rate unchanged, maintaining the current range of 4.25% to 4.5%, a level it has held since December.
Although Trump has long demanded that the Fed cut rates, the central bank defended its decision by pointing to “the risks of higher unemployment and higher inflation.”
During a press briefing following the announcement, Powell addressed Trump’s attacks, assuring that political pressure has no bearing on how the Fed sets policy, according to CNBC.
“We are always going to do the same thing, which is we are going to use our tools to foster maximum employment and price stability for the benefit of the American people,” Powell said. “We are always going to consider only the economic data, the outlook, the balance of risks, and that’s it. That’s all we are going to consider.”
Despite publicly considering removing Powell in the past, Trump said in a recent television appearance that he would not dismiss him before his term ends in May 2026.
He added that he believes interest rates will eventually come down, though he said Powell may resist doing so for personal reasons. “You know, he just doesn’t like me because I think he’s a total stiff,” Trump told NBC’s Kristen Welker.
Powell defended the Fed’s current posture, stating that monetary policy is “well-positioned to respond in a timely way to potential economic development.”
He acknowledged that Trump’s tariffs could bring upward pressure on prices, slow down the economy, and impact jobs if they remain in effect long-term. “They are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment,” Powell said.
Although he allowed for the possibility that the inflationary impact might be temporary, Powell noted the potential for more lasting effects. “It is also possible that the inflationary effects could instead be more persistent,” he said.
If the tariffs continue at their current levels, Powell suggested it may make it harder for the Fed to hit its targets. However, he added, the Fed isn’t in a rush to make further changes.
“We don’t have to be in a hurry,” he said. “The economy has been resilient. It’s doing fairly well … I can’t tell you how long it will take, but for now, it does seem like it’s a fairly clear decision for us to wait and see and watch.”
Powell also made it clear that he has never requested a private audience with Trump or any other president, despite the ongoing public criticism.
“I’ve never asked for a meeting with any president, and I never will,” he stated. “I wouldn’t do that. There’s never a reason for me to ask for a meeting. It’s always been the other way. I don’t think it’s up to a Fed chair to seek a meeting with the president.”
{Matzav.com}