Trump Blasts Fed Chair Powell After Central Bank Holds Rates Steady
U.S. President Donald Trump launched a fresh attack on Federal Reserve Chair Jerome Powell on Wednesday, just hours after the central bank opted to keep interest rates unchanged and refrained from signaling any immediate rate cuts.
In a social media post Wednesday evening, Trump wrote, “Powell is the WORST. A real dummy, who’s costing America $Billions!” The post was shared alongside an article referencing Freddie Mac and Fannie Mae Chairman Bill Pulte, who echoed Trump’s sentiment by calling on Powell to resign if he doesn’t begin cutting rates.
Trump has repeatedly pushed for more aggressive rate cuts and ramped up criticism ahead of the Fed’s latest policy decision. He argues that Powell’s reluctance to ease monetary policy threatens to harm the U.S. economy.
During his Wednesday press conference, Powell reaffirmed the Fed’s cautious approach to future rate cuts, pointing to expected inflation pressures stemming from Trump’s proposed trade tariffs. While the Fed still anticipates two rate cuts in 2025, it scaled back expectations for 2026.
The central bank left its benchmark interest rate unchanged at 4.25% to 4.50%, following a cumulative 100-basis-point reduction earlier in 2024. It continues to strike a cautious tone regarding any additional easing this year.
Powell’s comments disappointed markets hoping for a more dovish shift, especially after recent data revealed signs of strain in the U.S. economy. Inflation has stalled, and analysts warn it may rise again if new tariffs are implemented. Meanwhile, consumer sentiment and spending have weakened, and the labor market is showing signs of cooling.
Trump has previously suggested he might try to remove Powell over his resistance to cutting rates, though it remains legally unclear whether he has the authority to do so. Powell has insisted he intends to serve out his term, which ends in May 2026.
