President Trump slams Federal Reserve Chair Jerome Powell for keeping the interest rates too high and costing the country billions.
On Wednesday, the U.S. central bank held interest rates steady for the fourth time in a row, despite President Trump calling for lower interest rates. While policymakers have signaled that borrowing costs are likely to fall in 2025, Powell disagrees. Reuters reported that at his press conference on Wednesday, Powell had said “policymakers are well-positioned to wait” before moving further on rates.
In response, President Trump has slammed Powell on Truth Social, saying, “TOO LATE’s an American Disgrace!” The interest rate has been held at 4.25 to 4.50 percent since December 2024. Breitbart reported that Powell said the Fed would need “greater confidence that inflation is moving sustainably toward 2 percent.” President Trump disagreed and said on Truth Social, “We should be 2.5 Points lower, and save $BILLIONS on all of Biden’s Short Term Debt. We have LOW inflation!”
Reuters reported that during Powell’s press conference after the two-day U.S. central bank meeting, Powell tried to blame the decision on President Trump’s tariffs without proof. He said, “Increases in tariffs this year are likely to push up prices and weigh on economic activity.”
“Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs, because someone has to pay for the tariffs” Said Powell and added, “Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer.”
President Trump also contrasted Powell’s inaction with the European Central Bank, writing on Truth Social, “Europe has had 10 cuts, we have had none.” Breitbart reported that in the meantime, President Trump will focus on issuing short-term debt with lower interest rates until the Fed finally makes cuts.
President Trump’s anger towards Powell’s actions reflects the growing tensions between the two as he wrote on Truth Social, “Jerome Powell is costing our Country Hundreds of Billions of Dollars. He is truly one of the dumbest, and most destructive, people in Government, and the Fed Board is complicit.”
