- Trump called Jerome Powell “stupid” and said the Fed should cut interest rates by 2%, just hours before a key decision.
- He blamed Powell for high borrowing costs and even joked about appointing himself as Fed chair.
- Despite political heat, the Fed is expected to hold rates steady, with markets watching for a possible move in September.
Just a few hours ahead of the Federal Reserve’s big interest rate announcement, former President Donald Trump had some, uh, strong words for Fed Chair Jerome Powell. Speaking off the cuff outside the White House on Wednesday, Trump didn’t sugarcoat anything—calling Powell “stupid” and blaming him for costing the country billions.
“We have a stupid person,” Trump said bluntly. “Frankly, you probably won’t cut today. Europe had like 10 cuts—and we had none. I guess he’s political, I don’t know. Not a smart guy, though. And he’s costing us a fortune.”
Market Waits While Trump Fumes
The Fed’s interest rate decision is due shortly, and markets are basically certain there won’t be a cut today. Traders are eyeing September instead. For now, the Fed’s target rate remains between 4.25% and 4.50%.
But Trump’s not having it. He insists the central bank should drop rates by at least 2 percentage points. He also brushed aside inflation concerns, claiming there’s been no real inflation despite Powell’s cautious stance.
“If he’s worried about inflation, that’s fine,” Trump said. “But so far there hasn’t been any. He just refuses to lower the rate. And he’s not smart. I don’t even think he’s political—I think he just hates me. But whatever.”
Political Pressure? Trump Doesn’t Care
Trump and Powell met recently, though neither has revealed what went down. The Fed has stressed it won’t let politics steer its decisions—even as pressure ramps up from Trump and folks like VP JD Vance.
And in classic Trump style, he even joked about putting himself in charge of the Fed. “I’d do a much better job than these people,” he said with a smirk.
Looking Ahead: Powell’s Time Running Out?
Powell’s term is up in May 2026, but Trump hinted he may tap a new Fed chair before then. Whether that’s serious or just more political theater is anyone’s guess.
What’s clear? Trump’s not done throwing punches, and the Fed’s decision—cut or no cut—isn’t likely to change that anytime soon.
