- Trump called Jerome Powell “destructive” and a “real dummy” for not cutting interest rates, renewing his long-running feud with the Fed chair.
- The Federal Reserve left rates unchanged at 4.25%–4.5%, with Powell saying the Fed needs more clarity on the economy before making changes.
- Trump teased that he’ll soon announce his choice for the next Fed chair and even joked about appointing himself to the role.
President Donald Trump took another swing at Federal Reserve Chair Jerome Powell on Thursday, blasting him as “destructive” after the Fed opted to keep interest rates unchanged. Trump, never shy about sharing his views on monetary policy, claimed Powell is costing the U.S. “hundreds of billions” by refusing to slash rates.
Posting on Truth Social, Trump fumed, “We should be 2.5 Points lower, and save $BILLIONS on all of Biden’s Short Term Debt.” Hours earlier, just before midnight, he also called Powell a “real dummy”—adding yet another jab in a long line of late-night rants aimed at the Fed chief.
Powell Urges Patience, Trump Pushes Back
Powell, whose term runs until May 2026, addressed the decision Wednesday, saying the Fed is “well positioned to wait to learn more about the likely course of the economy before considering any adjustments.” But Trump clearly wasn’t buying it.
In fact, he’d already been on the attack earlier in the day. “So we have a stupid person. Frankly, you probably won’t cut today,” he told reporters outside the White House. He also grumbled, “Europe had 10 cuts, and we had none.” Then came the kicker: “I’d do a much better job than these people.”
Trump’s Rate Cut Demands Aren’t New
This latest blow-up isn’t out of the blue. Trump has criticized Powell for years—he’s called him names, questioned his intelligence, and accused him of playing politics. Back when Powell was first appointed during Trump’s own presidency, the relationship started out warm enough. But that didn’t last.
Even after Powell got a second term under President Biden, Trump hasn’t let up. And now that Powell’s holding firm with rates between 4.25% and 4.5%, the former president is turning up the volume.
What’s Next for the Fed?
Though Powell has brushed off the pressure, the tension between the Fed and Trump is far from over. Trump has already said he’ll be announcing his pick for the next Fed chair “very soon.” Whether or not that person ends up being Powell’s actual replacement, one thing’s for sure—Trump’s going to keep pushing for lower rates, no matter who’s in the chair.
