President Trump tore into Federal Reserve Chair Jerome Powell early Thursday, a day after the central bank opted to hold interest rates steady — bucking calls from the president to lower borrowing costs.
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump wrote on his Truth Social platform. “Other than that, I like him very much!”
He added, “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 Fed’s interest rate-setting committee left rates at a range of 4.25 percent to 4.5 percent Wednesday. The decision marked the third hold in a row, following pauses during meetings in March and January. The Fed cut rates three times in the back half of 2024.
Powell said Wednesday during a press conference that solid fundamentals in the economy afford the central bank time to see how new trade, fiscal and regulatory policies will unfold.
“The labor market is solid, inflation is low. We can afford to be patient as things unfold,” he said following the announcement. “There’s no real cost to our waiting at this point.”
“There’s a great deal of uncertainty about … where tariff policies are going to settle out and also, when they do settle out, what will be the implications for the economy, for growth and for employment,” the Fed chief added.
Trump has repeatedly pressured the Fed and Powell to lower interest rates as his administration grapples with economic uncertainty following his sweeping tariff rollout.
“The Fed should lower its rate!!!” he wrote last week on Truth Social.
In a separate post last month, the president wrote, “This would be a PERFECT time for Fed Chairman Jerome Powell to cut interest rates. He is always ‘late,’ but he could now change his image, and quickly.”
But as the markets have shifted under the weight of the ongoing trade war — particularly with China, the world’s second largest economy — the president has shifted his economic messaging. In recent days, he’s acknowledged that U.S. consumers will likely feel the squeeze of tariffs with rising costs and should consider buying less.
Trump’s frustration with Powell over interest rates seemingly came to a head last month, with some questioning whether the White House would try to oust him. But the president later dispelled that notion, saying he had no intentions of firing the Fed leader.
