Trump Slams Powell Over Fed Rate Hold, Calls for Cuts to Boost Markets

Donald J. Trump, the former U.S. president, has sharply criticized Federal Reserve Chair Jerome Powell over the central bank’s decision to hold interest rates steady in the face of ongoing economic challenges [1]. Through his Truth Social platform, Trump labeled Powell a “stubborn MORON” and a “total loser,” and called for immediate and substantial interest rate cuts to stimulate economic growth and stabilize financial markets [2]. His rhetoric has escalated in recent days, with the urging the Fed’s Board to “assume control” of monetary policy if Powell refuses to act [3].

The statements have stirred significant volatility in financial markets, with traders and investors recalibrating expectations for future Fed moves. Market sentiment has shifted toward anticipating a potential rate cut as early as September, a reversal from prior expectations of a more prolonged pause in rate adjustments [4]. The heightened speculation has also influenced USD markets, with potential implications for risk assets, including cryptocurrencies, as investors anticipate a more accommodative monetary environment [5].

Trump’s aggressive stance highlights a growing tension between the and the central bank, with his public comments increasingly challenging the Fed’s independence and policy direction. He has repeatedly warned that Powell’s leadership is incompatible with his vision for economic revitalization and has suggested that a more direct presidential role in monetary policy is necessary [6]. His remarks align with a broader narrative among some of his supporters, who argue that a more aggressive rate-cutting strategy could help stimulate the economy and support asset prices ahead of the 2024 election cycle [7].

Despite the mounting pressure, the Federal Reserve has maintained its cautious approach, emphasizing the need to ensure that inflation remains under control before considering rate reductions. The central bank has also cited uncertainty in the broader economic outlook, which has contributed to its decision to hold borrowing costs steady [8]. Analysts note that while Trump’s influence may increase speculative market movements, the Fed’s policy decisions ultimately rest on its assessment of economic data and inflation trends, not political pressure [9].

Sources:

[1] Trump Slams Powell 'Moron' (https://www.foxbusiness.com/politics/trump-slams-powell-moron-calls-feds-board-take-control-policy-moves)

[2] Trump Hails Powell as 'Total Loser' (https://www.foxbusiness.com/politics/trump-hits-powell-total-loser-after-fed-leaves-rates-unchanged)

[3] Trump Calls for Fed Board to Take Control (https://www.ktvu.com/news/trump-calls-federal-reserve-pull-control-from-jerome-powell)

[4] Trump Pressures Fed After Rate Hold (https://www.ainvest.com/news/trump-pressures-fed-rate-hike-hold-resignation-vacancy-2508/)

[5] Trump Slams Powell as 'Stubborn Moron' (https://www.investing.com/news/economy/trump-says-fed-board-should-assume-control-if-powell-fails-to-lower-rates-4165598)

[6] Trump Threatens to Fire Powell (https://www.arabnews.com/node/2610332)

[7] Trump’s Economic Supporters Push for Rate Cuts (https://www.businessinsider.com/trump-federal-reserve-vacancy-adriana-kugle-rerome-powell-rate-cuts-2025-8)