Trump Blasts Powell for Keeping Rates at 4.25-4.5%

President Donald Trump has once again voiced his discontent with Federal Reserve Chair Jerome Powell, this time criticizing Powell for not lowering interest rates. Trump took to his social media platform, Truth Social, to express his frustration, labeling Powell "a fool" who "doesn’t have a clue" and giving him the nickname "Too Late Powell."

Trump's comments came after the Federal Open Market Committee (FOMC) announced that it would maintain the target range for the federal funds rate at 4.25-4.5%. The FOMC argued that this level is most suitable to achieve both maximum employment and controlled inflation. The committee acknowledged that uncertainty about the economic outlook has increased, stating that the risks of higher unemployment and higher inflation have both risen. The Fed has held interest rates steady since December, when it cut the rate by 0.25%.

Trump, speaking to reporters, compared talking to Powell to "talking to a wall." He noted that other central banks, such as the Bank of England and China, have cut their rates, while the Fed has not. Trump expressed his belief that the U.S. economy is strong enough to withstand the Fed's inaction, stating that the country's economic strength would mitigate any potential negative effects of the Fed's decision.

Trump's frustration with Powell's rate policy is not new. He has been vocal about his disapproval for years, and his criticism has grown as the Fed has maintained its steady rate. Despite his frustration, Trump has stated that he has "no intention" of firing Powell. Powell, for his part, has maintained that the Fed's decision to keep rates steady is based on the solid fundamentals in the economy.

The Fed’s interest rate-setting committee left rates at a range of 4.25 percent to 4.5 percent, marking the third hold in a row after pauses during meetings in March and January. The Fed cut rates three times in the back half of 2024. Trump's criticism of Powell comes as the president has been pushing for lower interest rates, claiming that inflation is no longer a threat and blaming Powell for stalling economic growth. However, Powell has maintained that the central bank's decision to keep rates steady is based on the solid fundamentals in the economy.