By Shane Croucher and Aliss Higham
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President Donald Trump once again lashed out at Federal Reserve Chair Jerome Powell, calling him a "FOOL" a day after the central bank decided to hold interest rates steady.
Trump wants interest rates to come down more quickly to help boost economic growth, but the Federal Reserve is concerned that his tariffs will soon drive inflation up again, and a key part of its role is to maintain price stability.
"'Too Late' Jerome Powell is a FOOL, who doesn't have a clue," Trump posted to his Truth Social platform on Thursday morning.
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"Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and "eggs") down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF 'TOO LATE!' ENJOY!"
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The Context
The Federal Reserve left its benchmark interest rate steady at 4.25 percent to 4.5 percent, citing ongoing inflation and increased uncertainty stemming from recent policy changes like significant tariff increases on trading partners.
"If the large increases in tariffs that have been announced are sustained, they're likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment," Powell said following the Fed meeting on May 7. "The effects on inflation could be short-lived, reflecting a one-time shift in the price level. It is also possible that the inflationary effects could instead be more persistent."
Trump, who pledged lower rates during his re-election campaign last year, has urged the Fed to reduce rates "pre-emptively" and has suggested removing the head of the central bank, whom he criticized as "a major loser" and "Mr Too Late" for failing to cut rates quickly enough.
Donald Trump's Criticism of Jerome Powell
This is not the first time the president has been critical of Powell, who he appointed to chair the Fed during his first term. In April, White House economic adviser Kevin Hassett said Trump and his team were exploring its options when asked by a reporter if firing Powell was an option.
"The president and his team will continue to study that matter," Hasset said. The Fed is independent of the White House and Congress, and Powell has said he intends to serve through to the end of his term in May 2026.
In late April, Trump said he had "no intention" of firing Powell.
When asked about removing Powell on NBC's "Meet the Press" on May 4, Trump ruled out the prospect.
"No, no, no... why would I do that? I get to replace the person in another short period of time," the president said.
In the same interview, Trump said Powell should lower interest rates and that he expects he will "at some point."
"He'd rather not because he's not a fan of mine. You know, he just doesn't like me because I think he's a total stiff," he said.
What Happens Next
Powell has so far been resilient against bowing to the president's request to lower rates, and is likely to continue this while the economic impact of Trump's tariffs becomes clearer.
The Trump administration is currently in negotiations with 15 countries for trade deals that could lower tariffs. An agreement announcement with the United Kingdom is expected today.
Newsweek has contacted the Federal Reserve for comment via email.
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