Trump criticizes Jerome Powell following the Fed's decision to maintain interest rates unchanged.
** Trump goes off on Powell, slams Fed for not cutting rates and costing the US 'billions'**
Looks like President Donald Trump hasn't lost his fire for the Federal Reserve, especially Chair Jerome Powell. On Thursday, Trump took Powell to task, calling him "destructive" after the central bank held interest rates steady.
"We should be 2.5 Points lower, and save $BILLIONS on all of Biden's Short Term Debt," Trump wrote on his Truth Social platform. This isn't the first time Trump has criticized Powell for not cutting rates, with accusations of costing the US "hundreds of billions of dollars."
Trump has been at it since Wednesday, even before the Fed decision, stating, "So we have a stupid person. Frankly, you probably won't cut today." Outside the White House, he took it up a notch, calling Powell a "real dummy" in a late-night Truth Social post.
Powell, whose term ends in May 2026, remains unfazed and says the Fed is "well positioned" to wait and see more about the economy before considering any policy changes.
Meanwhile, it's not just Trump's critique that Powell has weathered. He faced criticism earlier during Trump's administration, mostly over interest rate policies. This history showcases increasing tension and public rebuke centered on the Fed's interest rate decisions during and after Trump's term.
During his presidency, Powell raised interest rates and began quantitative tightening (reducing the Fed’s asset portfolio). Trump called for sharp cuts to these rates and even considered firing Powell. Later, in 2025, Trump pushed even harder, demanding lower rates and expressing frustration, even joking about appointing himself to the Fed.
In contrast, the Fed under Powell has maintained a cautious approach, emphasizing economic risks and managing inflation pressures, any of which Trump has repeatedly criticized as unnecessarily restrictive.
Keep it locked to CNBC for more insights on this developing story!
Insights:
President Donald Trump's criticism of Federal Reserve Chair Jerome Powell over interest rate decisions has a notable history marked by increasing hostility and public rebuke, mainly focused on the Fed's interest rate policies during and after his administration. Early criticism during Trump's administration centered around Powell's attempts to raise interest rates and initiate quantitative tightening, leading to volatility in financial markets. Trump's discontent grew as Powell abandoned quantitative tightening, but Trump's demands for swift rate cuts continued to go unheeded. In 2025, Trump intensified his criticism of Powell and the Federal Reserve's monetary policy, particularly focus on interest rates remaining higher than Trump deemed appropriate. Trump demanded rates be at least two percentage points lower, criticized Powell as unintelligent and compared Fed policies to those in Europe. The Fed, however, emphasized economic uncertainty and maintained interest rates to manage inflation pressures. This feud reflects broader tensions between the president's desire for easy monetary policy to boost growth and the Fed's commitment to controlling inflation and managing economic risks independently.
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- As the feud between President Donald Trump and Federal Reserve Chair Jerome Powell intensifies, business news outlets are closely monitoring the ongoing tension, with Trump criticizing Powell's interest rate policies and the Fed rejecting his demands for lower rates.
- Meanwhile, in the world of finance and policy-and-legislation, the Federal Reserve's approach to economic management has attracted significant attention, as Powell maintains a cautious stance while Trump advocates for easier monetary policy.
- Amidst this debate, the impact of high interest rates on consumers cannot be ignored, as the general news reports on the increasing burden of credit on households, particularly those with retail credit cards.
- In international markets, the oil industry is abuzz with the escalating tensions between Israel and Iran, as oil prices see a rise of more than 1% due to Israel's vow to intensify attacks.
