Trump slams Powell’s decisions as Fed holds interest rate steady

Another Fed day, another yap from the president of the United States. Donald Trump told reporters outside the White House on Wednesday that Jerome Powell, the man in charge of US monetary policy, is “not smart” and “costing the country a fortune.”

With only a few hours left before the Federal Reserve’s next interest rate announcement, Trump unloaded yet again. He said Powell’s refusal to cut rates is draining the economy and claimed he could run the central bank better himself.

The president complained that borrowing costs are way too high and blamed Powell directly for the damage.

“So we have a stupid person. Frankly, you probably won’t cut today,” Trump said. “Europe had 10 cuts, and we had none. And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”

The Fed’s current target is between 4.25% and 4.50%, and there was no market expectation of any cut this time. Traders see the next move happening in September.

Trump slams Powell’s decisions as Fed holds interest rate steady

Trump made it clear that he thinks the Fed’s hesitation is causing unnecessary financial pain. He said the high interest rates are “costing the US hundreds of billions” in financing that could be saved if Powell would just lower the rate.

“If he’s worried about inflation, that’s OK. I understand that. I don’t think there’s going to be any. So far there hasn’t,” Trump said. But he added that Powell “just refuses to do” what needs to be done.

The president said he didn’t believe Powell was acting purely out of political reasons. “I don’t even think he’s that political. I think he hates me, but that’s OK,” Trump said. The issue isn’t new. He’s been going after Powell for years, long before returning to the White House in 2025. But this round felt personal. He questioned Powell’s judgment, his intelligence, and even accused him of refusing to help the country out of spite.

The rate decision came with no surprises. The Fed held its policy steady. Powell and the rest of the Fed board didn’t mention Trump, but they’ve said repeatedly that they won’t take instructions from any politician. That hasn’t stopped the pressure. Vice President JD Vance has joined the White House calls for rate cuts, echoing Trump’s claim that the Fed is holding the country back.

“Can I appoint myself Fed chair?”

During his talk with reporters, Trump also brought up the idea of running the Fed himself. “I’d do a much better job than these people,” he said. He’s said this before, but with Powell’s term ending in May 2026, this time there’s real weight behind it. Trump said he’s planning to name a successor soon.

Even though Trump and Powell met recently at the White House, there’s no public record of what they discussed. Powell and his colleagues have stuck to the line that their decisions are based on data, not politics.

But Trump keeps pushing, making it very public that he thinks Powell is hurting the economy. He pointed to the European Central Bank as an example, saying it has already lowered rates ten times while the Fed hasn’t moved at all.

The president also brought up his own past trade policies. The long-term effects of the tariffs he introduced are still unclear. Inflation indicators haven’t changed much since the latest round in April, and Powell’s team has been cautious, not wanting to make any rate moves until there’s more clarity on how the economy is adjusting. But Trump doesn’t care about that. He wants lower rates now and sees Powell as the one standing in the way.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now