US President Donald Trump made harsh criticisms of FED Chairman Jerome Powell ahead of the FED meeting that will end in the coming hours. Describing Powell as “stupid”, Trump said he did not think the FED would cut interest rates.
Speaking to reporters in front of the White House, Trump said, “We have a stupid man. Let me be frank, it doesn’t look like he’s going to cut interest rates today.” Stating that Europe has cut interest rates ten times in the last period, Trump accused Powell of acting politically, stating that the FED has not taken the same step: “He’s a political man, but he’s not a smart man. He’s costing the country a lot.”
Trump argued that the Fed’s policy rate should be at least two points lower. The Fed’s policy rate is currently hovering between 4.25% and 4.50%, and markets are not expecting a rate cut at this meeting. A possible step is expected to come in September.
President Trump has argued that high interest rates are costing the U.S. hundreds of billions of dollars in financing. Regarding inflation concerns, he said, “If they’re worried about inflation, I understand that. But that hasn’t happened so far.”
Fed Chairman Powell and other officials have stated that interest rates should be cautious due to economic uncertainties. In particular, the long-term effects of the tariffs implemented by the Trump administration remain uncertain.
Trump also said he thought Powell was against him personally: “I think she hates me, but that’s fine too. She refuses to cut rates because she’s not smart.”
Powell and Trump recently met at the White House, but the content of the conversation was not made public. While Powell has often said that they will not be swayed by political pressure, Trump and other government officials, such as Vice Chairman J.D. Vance, have increased pressure on the Fed.
Trump even humorously said that he should be the Fed Chair, saying, “I would do a much better job than these people.”
Jerome Powell’s term ends in May 2026. Trump announced that he will soon choose a new candidate.
*This is not investment advice.
