Trump Criticizes Powell, Labeling Him a 'Fool,' Following Fed's Decision to Maintain Interest Rates
Here's a fresh take on the ongoing drama between President Trump and Federal Reserve Chair Powell:
President Trump's criticism of Federal Reserve Chair Jerome Powell reached new heights when he dubbed him a "fool" following the latest decision to leave interest rates untouched. The president expressed his displeasure on his Truth Social platform, voicing his dissatisfaction over the U.S. central bank's reluctance to cut rates.
Powell has been patiently waiting for insight into how Trump's trade policies might impact the economy before making a move on interest rates. At a recent press conference, Powell stated that prolonged tariffs could lead to inflation and unemployment. However, Trump has been relentless in his pursuit of rate cuts, pointing fingers at other central banks like the Bank of England and China, which have made rate reductions.
On Thursday, amid a press conference announcing a new trade deal with the U.K., Trump reiterated his comparisons, stating, "The Bank of England cut, China cut, everybody's cutting but (Powell). It's a shame, it's ridiculous. He's always too late..."
The market has been held hostage to this constant back-and-forth between the president and the Fed chair. Trump has been vocal in his critiques of Powell, but he's made it clear that he has no intention of ousting him before his term ends in 2026. This news has eased some concerns among market watchers who have been speculating about a potential leadership change.
In the ever-evolving dance between economic policy and political pressure, the Fed's resolve to maintain inflation control over immediate rate reductions continues to frustrate Trump. With his crosshairs focused firmly on the Fed, the question remains: Will Powell crack under the pressure, or will he continue to hold his ground, preserving the Fed's credibility? Only time will tell.
Update, May 8, 2025: This article has been updated with Trump's additional comments from recent days.
If you're intrigued by this drama, visit our website for more juicy bits of economic news!
- criticism of Federal Reserve Chair Jerome Powell's reluctance to reduce tariffs has led to ridiculous comparisons in finance and general-news between the U.S. central bank and other institutions like the Bank of England and China.
- Despite Trump's vocal critiques, he has no intention of ousting Powell before his term ends in 2026, as market watchers had been speculating about a potential leadership change.
- The Fed's resolve to maintain inflation control over immediate rate reductions continues to frustrate Trump, as the dance between economic policy and political pressure unfolds in 2025.
- In the ongoing drama between President Trump and Federal Reserve Chair Powell, the market has been held hostage to constant back-and-forth, with the fate of economic policy hanging in the balance.
- Prolonged tariffs, as cited by Powell, could lead to inflation and unemployment, further complicating the 2025 economic landscape in business and politics.
