Trump lashes out at Jerome Powell, says he's ‘stupid’ and ‘politicized’
Trump said the economy is doing very well despite the Fed's high interest rates, but would be doing even better if Powell lowered them.
Donald Trump at the White House
Donald Trump asserted Wednesday that Federal Reserve (Fed) Chief Jerome Powell is "stupid" and is "politicized," hours before the Central Bank says whether to lower interest rates.
"He's a political guy and not a smart person," the president told reporters on the lawn of the White House on the occasion of the installation of two new flagpoles.
Trump said the economy is doing very well despite the high Fed interest rates, but would be doing even better if Powell lowered them.
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"We have no inflation, just success, and I'd like to see interest rates come down," he added.
The president also said the central bank should cut its benchmark rate by two and a half percentage points.
Trump also proposed a short-term debt strategy that he said will save taxpayers money.
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"What I'm going to do is go very short-term, like six months, seven months, eight months. Wait for this guy to get out, lower rates a lot, and then go long term," Trump said. "We have a tremendous appetite for our debt because our country is doing well."
Trump continued his criticism of Powell, calling him a "stupid person" and predicting the Fed will not implement rate cuts at the end of its policy meeting Wednesday.
Fed prepares to hold interest rates
The U.S. Federal Reserve on Wednesday wraps up its monetary policy meeting at which it is expected to hold interest rates for a fourth consecutive meeting.
This is the Fed's fourth meeting since Donald Trump returned to the White House in January. The previous three meetings ended with rates between 4.25% and 4.50%, levels set in December 2024.
The central bank remains cautious in the face of import tariffs determined by Trump and geopolitical crises.
And after four meetings this year with rates intact, analysts do not expect further adjustments.
The central bank has a dual mandate: keep inflation low and seek full employment, mainly by raising or lowering its benchmark interest rate, which acts as a boost or a drag on demand.
Powell won't budge
As confirmed by the Trump Administration, during that meeting the president reiterated to Powell that he is making a mistake by not cutting interest rates.
"The president's position is clear: He believes the Fed chairman is making a mistake by not cutting interest rates, which puts us at an economic disadvantage against China and other countries," White House spokeswoman Karoline Leavitt told a press conference. "The president has been very vocal about it, both publicly and - I can now confirm - privately."
According to a statement from the Fed itself, Powell reportedly made clear that Fed decisions will be made solely on the basis of "careful, objective, non-political analysis."
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