- Trump blasted Fed Chair Jerome Powell as “too stupid” and a “total loser” after the Fed left interest rates unchanged for the fifth straight meeting.
- The Fed cited persistent inflation and tariff-driven price pressures, while signaling it’s not ready to cut rates despite Trump’s demands.
- June’s PCE data showed rising inflation, pushing the odds of a September rate cut below 47% and weakening Trump’s case for immediate easing.
Donald Trump didn’t hold back. After the Federal Reserve left interest rates unchanged for the fifth straight time, the former president jumped onto Truth Social with a fiery takedown of Fed Chair Jerome Powell—someone he appointed, but now regularly slams.
“Jerome ‘Too Late’ Powell has done it again!!!” Trump wrote. “He is TOO LATE, TOO ANGRY, TOO STUPID, & TOO POLITICAL to be Fed Chair. He’s costing our country TRILLIONS and overseeing one of the most incompetent, maybe corrupt, renovations ever.” And then the punchline: “Put another way, ‘Too Late’ is a TOTAL LOSER, and America’s footing the bill!”
So yeah… not exactly subtle. And not surprising, either.
What’s Behind the Fed’s Move?
Despite mounting pressure from Trump, the Fed kept its key interest rate unchanged—again—citing ongoing inflation risks, the unknown ripple effects of tariffs, and a strong labor market.
In a post-meeting press conference, Powell said the central bank is still focused on bringing inflation back to its 2% goal, even as the economy hums along. “We’re near full employment,” he said. “We’re in a position to cut rates if the data turns, but we’re not there yet.”
He also added that tariffs are starting to show up in consumer prices, pushing inflation higher. But he was cautious—“It’s not yet clear whether those price spikes are a one-off… or something more persistent.”
Trump’s Rate Cut Crusade
Earlier that same day, Trump was already gearing up. On Truth Social, he touted 3% GDP growth in Q2, calling it “WAY BETTER THAN EXPECTED!” and added: “‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy and refinance their homes!”
But with the Fed holding—and no more meetings till mid-September—Trump’s not getting that cut anytime soon. And honestly? Odds of a September move just dropped.
Why? The Commerce Department’s latest PCE report (the Fed’s preferred inflation gauge) showed consumer prices rising again. Headline PCE for June came in at 2.6%, up from 2.3%. Core PCE? That ticked up too—from 2.7% to 2.8% year-over-year.
What Now?
The market took notice. After the PCE print hit, expectations for a September rate cut dropped like a rock. CME FedWatch now puts the odds at under 47%, down from 58% a week ago.
So for now, Powell’s standing firm, inflation is drifting further from target, and Trump’s still yelling from the sidelines. Whether it’s political posturing or real economic pressure—it’s clear we’re in for more fireworks before the Fed meets again.
