President Donald Trump slammed Chairman Jerome Powell on Wednesday, just hours from the Fed’s latest interest rate decision, calling him “stupid” and he doubted the central bank would cut it.
Trump said in a series of latest attacks on Powell that the Fed’s main borrowing rate should be reduced by at least 2 percentage points.
“So we have a stupid guy. Frankly, you probably won’t cut it today,” Trump said in impromptu comments outside the White House. “There are 10 cuts in Europe, and we don’t. I think he’s a politician, I don’t know. He’s a politician who is not a smart person, but he’s losing the wealth of this country.”
The comments are about four hours before the Federal Open Market Committee, which sets interest rates, issued its interest rate statement, and an update on the policies and several key economic indicators it sees in the coming years.
Market pricing indicates no possibility of cuts at this meeting, with next move expected in September. The Fed is currently in the range of 4.25%-4.5% with its overnight lending ratio.
Powell made his colleagues hesitate to numerous unsolved issues about economic issues.
First, the long-term impact of Trump’s tariffs is unclear. Inflation indicators have hardly changed since the tariffs were imposed in April, but various factors colluded to save duties from taxes.
However, Trump said higher interest rates cost the U.S. financing costs “ten billions”, which could save if the Fed relaxes.
“If he’s worried about inflation, that’s OK. I get it. I don’t think so. So far, not.”
“But now we have a guy who refuses to lower the Fed rate and just refuses to do that, he is not a smart guy,” the president added. “I don’t even think he’s political. I think he hates me, but that’s OK.”
Trump and Powell met recently at the White House, although there were little disclosures about the discussion. Powell and his colleagues have vowed that they will not be affected by political pressure, which has intensified, including other executive officials, including Vice President JD Vance.
Trump even indulged in appointing himself as Fed chairman, saying: “My job is much better than these people.”
Powell’s term expires in May 2026, and Trump said he intends to name his successor as soon as possible.
