As the Federal Reserve prepares to announce its latest interest rate decision, President Donald Trump has strongly criticized Chair Jerome Powell, labeling him “stupid” and expressing skepticism that the Fed will lower rates.
In his ongoing critique of Powell, which has continued for years, Trump asserted that the Fed’s borrowing rate should be reduced by at least 2 percentage points.
“We have a foolish person. Honestly, I doubt that you’ll see a cut today,” Trump stated in comments made outside the White House. “Europe has had 10 cuts, while we’ve seen none. I believe he’s a political figure—maybe not the sharpest tool in the shed—and he’s costing the nation a fortune.”
These comments were made just four hours before the Federal Open Market Committee was set to release its statement regarding interest rates, along with expectations for future policy and key economic indicators for the years ahead.
Current market forecasts show no likelihood of a rate cut during this meeting, with the next potential adjustment anticipated for September. Presently, the Federal Reserve’s overnight borrowing rate is between 4.25% and 4.50%.
Powell and his team have shown caution about modifying rates given the uncertainties surrounding the economy.
For instance, the long-term effects of Trump’s tariffs remain unclear. While inflation indicators have remained stable since the tariffs were enacted in April, various elements have softened their impact.
However, Trump argues that elevated interest rates are causing the U.S. to lose “hundreds of billions” of dollars in potential savings on financing costs, which could be mitigated if the Fed were to ease rates.
“If he’s concerned about inflation, that’s fine. I get that. But I don’t believe there will be any. Up to now, there hasn’t been,” Trump remarked.
“But we have someone who refuses to lower the Fed rate; he’s just unwilling, and he isn’t very bright,” the president added. “I doubt he’s even that political. I think he dislikes me, but that’s alright.”
Trump and Powell had a meeting at the White House recently, though details of their discussion remain largely undisclosed. Powell and his team have promised not to yield to political pressure, which has been increasing, with other officials from the administration, including Vice President JD Vance, also weighing in.
Trump even speculated about appointing himself as Fed chair, claiming, “I could do a far better job than these people.”
Powell’s term runs until May 2026, and Trump has expressed plans to appoint a successor soon.
