President Donald Trump launched a scathing attack on Federal Reserve Chair Jerome Powell on Thursday, labeling him “destructive” after the central bank decided to maintain steady interest rates during its recent meeting.
Trump accused Powell of causing the country significant financial harm by failing to lower rates, suggesting that the Fed chair is responsible for “hundreds of billions of dollars” in losses. This criticism follows a familiar pattern, as Trump has consistently pressed Powell to consider rate cuts.
On Truth Social, Trump asserted that rates should be lowered by 2.5 percentage points, claiming this adjustment could result in substantial savings on national debt incurred during President Biden’s tenure.
Late Wednesday, Trump also took to Truth Social to disparage Powell, referring to him as a “real dummy” in a post shared just before midnight.
In his remarks on Wednesday, Powell noted that the Fed is “well positioned to wait” and assess the economic landscape before making any policy changes, indicating a cautious approach to rate adjustments.
Trump’s criticism followed the Federal Open Market Committee’s decision to keep its benchmark borrowing rate in a range of 4.25%-4.5%, a level that has remained unchanged since December.
This line of attack was expected, as Trump has long voiced his dissatisfaction with Powell’s reluctance to lower interest rates.
Earlier on Wednesday, prior to the Fed’s announcement, Trump remarked, “So we have a stupid person. Frankly, you probably won’t cut today,” highlighting his longstanding frustration with Powell’s decisions.
“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,” Trump said outside the White House.
Additonally, Trump speculated about the possibility of appointing himself to head the Federal Reserve, asserting, “I’d do a much better job than these people.”
The former president has indicated that he plans to announce his choice for the next chair of the Federal Reserve “very soon.”
