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President Donald Trump derided Federal Reserve Chairman Jerome Powell once again Thursday, a day after the central bank voted to not lower rates because of economic uncertainty created by tariffs.
Trump said in a Truth Social post:
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! 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!”
The Fed on Wednesday voted to keep its benchmark interest rate in a range of 4.25% to 4.5%, where it’s kept it on hold since December, frustrating the president who wants the central bank to cut rates to counter a possible slowing economy due to the rollout of his trade policies.
The Fed said that it was keeping rates the same until the economic outlook becomes a bit more clear and that “the risks of higher unemployment and higher inflation have risen.”
Powell addressed Trump’s frequent criticisms and call to lower rates briefly in a press conference that followed the Fed’s decision, saying it would not impact the Fed’s job “at all.”
“We are always going to do the same thing, which is we are going to use our tools to foster maximum employment and price stability for the benefit of the American people,” Powell said. “We are always going to consider only the economic data, the outlook, the balance of risks and that’s it. That’s all we are going to consider.”
Trump troubled the markets last month with investors fearing he would move to fire Powell before his term as chair ends in May 2026. The comments helped fuel a market sell-off that came amid his implementation of extreme tariffs, which he later paused.
But Trump in late-April said he had “no intention” of firing Powell, comforting markets.
