President Donald Trump early Thursday called Federal Reserve Chair Jerome Powell a “fool” after the central bank kept its key interest rate unchanged one day earlier, citing the economic uncertainty created by his tariffs.
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump posted on Truth Social. “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!”
On Wednesday, the Fed voted to keep the benchmark interest rate ranging from 4.25% to 4.5%, the same rate it has remained since December.
Trump has frequently called on the central bank to cut the rates, but the Fed said the rates would stay the same because “the risks of higher unemployment and higher inflation have risen.”
Powell, addressing Trump’s criticism during a press conference after the Fed’s announcement, said the president’s push would not impact the Fed and its work, reported CNBC.
“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,” the chair 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 has threatened to fire Powell, but said Sunday in a television interview that he will not remove him before his term ends in May 2026.
The president also said that he expects the Fed will lower interest rates at some point, but told NBC News’ Kristen Welker that Powell would “rather not because he’s not a fan of mine. You know, he just doesn’t like me because I think he’s a total stiff.”
Powell said Wednesday that the current stance of monetary policy leaves the Fed “well-positioned to respond in a timely way to potential economic development.”
Still, he said that if the tariffs that have been announced are sustained, “they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment.”
Powell admitted that the effects on inflation could be short-lived, but added that “it is also possible that the inflationary effects could instead be more persistent.”
Still, he argued that if the Trump tariffs stay at their current level, it could delay the Fed from achieving its goals.
He also said he thinks the Fed is in a “good position to wait and see” what happens.
“We don’t have to be in a hurry,” he said. “The economy has been resilient. It’s doing fairly well … I can’t tell you how long it will take, but for now, it does seem like it’s a fairly clear decision for us to wait and see and watch.”
Powell also said he has not asked to meet with Trump or any other president, despite Trump’s frequent criticisms of him.
“I’ve never asked for a meeting with any president, and I never will,” he told reporters. “I wouldn’t do that. There’s never a reason for me to ask for a meeting. It’s always been the other way. I don’t think it’s up to a Fed chair to seek a meeting with the president.”
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