President Donald Trump launched a scathing attack on Federal Reserve Chair Jerome Powell on Thursday, calling him a “numbskull” and intensifying pressure on the Fed to lower interest rates.
During a statement at the White House, Trump asserted that a two-percentage-point reduction in rates could save the country $600 billion annually, criticizing Powell for what he perceived as a reluctance to act. “We can’t get this guy to do it,” Trump lamented.
“We’re going to spend $600 billion a year because of one numbskull who claims, ‘I don’t see enough reason to cut the rates now,'” he added, expressing frustration over the Fed’s current monetary policy.
While Trump clarified that he would support rate increases in the face of rising inflation, he noted that current inflation is low, stating, “It’s down, and I may have to force something.”
Trump’s comments came shortly after the Labor Department released data indicating that U.S. producer prices rose at a slower pace in May than expected. These economic indicators have mitigated concerns about an imminent inflation surge due to tariffs, motivating Trump and his supporters to increase pressure on the Federal Reserve.
This latest criticism of Powell marks the third occasion within two days that administration officials have targeted the Fed chair. Commerce Secretary Howard Lutnick voiced his concerns on Wednesday night, stating, “It’s unbelievable how much we would save if [Powell] did his job and cut interest rates.” He emphasized that the economy is well-positioned for such a move and added, “Inflation is low. Come on. He’s got to do his job soon.”
Earlier that day, Vice President JD Vance took to social media to share his view, describing the Fed’s reluctance to cut rates as “monetary malpractice.”
Despite Trump’s fiery rhetoric, markets largely shrugged off his comments. The president has recently been attempting to characterize Powell with the moniker “Too Late.” Current market sentiment indicates that traders see minimal likelihood of a rate cut occurring at the Fed’s upcoming meeting next week, with little expectation for adjustments at the July meeting as well.
However, traders have increased the perceived probability of a rate cut in September, with odds climbing to approximately 76% Thursday, up from 69% the previous day, according to data from CME Group.
This is breaking news. Please refresh for updates.
—Finance Newso’s Jeff Cox contributed to this report.
