On Thursday, President Donald Trump expressed his frustration with Federal Reserve Chair Jerome Powell for not heeding his calls to lower interest rates. This criticism came after the Federal Reserve decided once again to maintain interest rates without any changes during their latest meeting.
Trump's remarks followed a press conference where Powell stated he had never sought a meeting with the president and noted, “I never will.” When asked if he intended to request a meeting with Powell, Trump dismissively replied, “It’s like talking to a wall.” This comment elicited laughter from those present, including Commerce Secretary Howard Lutnick and Vice President Vance, who were alongside Trump in the Oval Office as he discussed a new trade agreement with the United Kingdom.
During his remarks, Trump highlighted that other countries, including the Bank of England and China, have opted to cut their interest rates, contrasting their actions with Powell's reluctance to follow suit. “Well, the Bank of England cut, China cut, everybody’s cutting but him,” Trump stated, indicating his disappointment with Powell's decision to keep borrowing costs unchanged. He even went so far as to nickname Powell “Too Late Powell,” expressing his belief that the Fed chair's actions are detrimental to the economy.
Despite his criticism of Powell, Trump also emphasized the strength of the U.S. economy, arguing that rate cuts may not have a significant impact. “In this case, it’s not going to matter that much because our country is so strong; we’re so powerful in terms of economic strength and what we’ve done,” he asserted. This perspective aligns with Powell's previous statements, which cited the robust fundamentals of the economy as a reason for the Fed's decision to maintain current rates and await the effects of new trade, fiscal, and regulatory policies.
The Federal Reserve's interest rate-setting committee decided to keep rates within a range of 4.25 percent to 4.5 percent, marking the third consecutive hold after similar pauses in March and January. In the second half of 2024, the Fed had previously implemented three rate cuts, which adds context to the ongoing debate about the necessity of further adjustments.
On social media, Trump did not hold back his criticism, labeling Powell “a FOOL, who doesn’t have a clue” regarding the decision to keep rates steady. Interestingly, Powell, a lifelong Republican, was originally nominated by Trump as Fed chair in 2017 and was later reappointed to the position by former President Joe Biden.
As the debate over interest rates continues, the interactions between Trump and Powell highlight the complexities of economic policy and the differing perspectives on how best to navigate the current economic landscape.
