In a series of striking remarks, former President Trump launched a scathing attack on Federal Reserve Chair Jerome Powell early Thursday morning. His comments came just one day after the Federal Reserve decided to maintain interest rates at their current level, ignoring the president’s persistent calls for a reduction in borrowing costs. Taking to his Truth Social platform, Trump did not hold back, labeling Powell as “‘Too Late’ Jerome Powell [who] is a FOOL, who doesn’t have a clue.” Despite the harsh criticism, he added an odd caveat, stating, “Other than that, I like him very much!”
Trump further elaborated on his stance, highlighting what he perceived as positive economic indicators. “Oil and Energy way down, almost all costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF ‘TOO LATE!’ ENJOY!” he wrote. His remarks seemed to suggest that, in his view, the Fed‘s decision to keep rates steady was misguided given the current economic situation.
The Federal Reserve’s interest rate setting committee, on Wednesday, chose to keep rates within a range of 4.25 percent to 4.5 percent. This marked the third consecutive meeting where rates were held steady, following pauses in March and January. It’s worth noting that the Fed had cut rates three times in the latter half of 2024. During a subsequent press conference, Powell explained the central bank‘s rationale. He emphasized that the solid fundamentals of the economy allowed the Fed the luxury of patience to observe how new trade, fiscal, and regulatory policies would play out. “The labor market is strong, inflation is low. We can afford to be patient as things unfold,” Powell said. “There’s no real cost to our waiting at this point.” He also pointed out the significant uncertainty surrounding tariff policies, noting, “There’s a great deal of uncertainty about … where tariff policies are going to settle out and also, when they do settle out, what will be the implications for the economy, for growth and for employment.” The clash between Trump’s views and the Fed’s decision has once again brought the topic of central bank independence and economic policy into the spotlight.
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