U.S. President Donald Trump renewed his attacks on Federal Reserve Chair Jerome Powell on Thursday, calling him a “fool” and slamming the Fed for refusing to cut interest rates.
In recent weeks, Trump has been fiercely critical of Powell, at one point even threatening to fire him — though he later stepped back from that threat. On his social media platform Truth Social, Trump has repeatedly ridiculed Powell, once labeling him “a major loser.”
Speaking a day after the Fed kept interest rates steady, as most financial markets had anticipated, Trump said that a rate cut would act like “jet fuel” for the U.S. economy — but claimed Powell was unwilling to act because “he doesn’t want to do it” and “he’s not in love with me.”
Just last week, Trump also suggested he understood interest rates better than Powell, adding he wasn’t “a huge fan” of the Fed chief.
The Fed this week left its benchmark rate unchanged in the 4.25%–4.50% range, where it has stood since December. Powell noted that despite Trump’s tariffs, which could potentially drive both inflation and unemployment higher, the economy so far has shown little evidence of either, giving the central bank time to observe how things unfold before deciding on further moves. Powell said the Fed would be ready to act, potentially with force, when needed.
Trump, however, had a sharply different take. On Thursday morning, he posted, “‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” adding that energy prices, grocery costs, and egg prices were all down, and there was “virtually NO INFLATION.”
While cutting rates can stimulate economic growth, doing so in the middle of high inflation risks fueling further price increases — something Powell has repeatedly warned against.
Trump appointed Powell as Fed chair in 2018 during his first term, and President Joe Biden later reappointed him for a second four-year term in 2022.
Also on Thursday, Trump and British Prime Minister Keir Starmer announced a “breakthrough deal” on trade, marking the first agreement since Trump imposed sweeping tariffs on most U.S. trading partners on April 2 — tariffs he later partially paused to allow for bilateral deals.
This progress on the trade front actually reduced the likelihood of aggressive Fed rate cuts, as financial markets scaled back their expectations for a July rate reduction and now see fewer than three cuts by year’s end.
Trump has been outspoken about his dissatisfaction with Powell’s leadership almost from the moment he nominated him. Last month, Trump’s public hint that he wanted Powell gone rattled markets, as investors feared it could undermine the Fed’s independence and its ability to control inflation.
At his Wednesday press conference, Powell declined to respond to Trump’s remarks. He has stated his intention to serve out his full term, which has about a year left.
While Powell has met three times with President Biden, his calendar shows that during Trump’s presidency, he had a 90-minute dinner at the White House and a few shorter meetings — but the two haven’t spoken since 2019. Powell clarified on Wednesday that he has never requested a meeting with a president, saying, “It’s always been the other way around.”
Trump, for his part, dismissed any future dialogue, saying Thursday that talking to Powell is “like talking to a wall.”
