President Donald Trump has called Federal Reserve Chair Jerome Powell “a real dummy” after interest rates were held steady once again.
Trump has been highly critical of Powell, publicly chastising him for not cutting interest rates sooner and making clear he wants a new Fed chair.
“Too Late—Powell is the WORST. A real dummy, who’s costing America $Billions!” Trump posted to his Truth Social platform on Thursday.
Alex Brandon/AP
Why It Matters
Powell has refused to lower interest rates, despite mounting pressure from Trump, amid concerns regarding inflation and uncertainty surrounding tariffs and trade. The last time the Federal Reserve cut interest rates was in December.
Trump, who believes higher interest rates are holding back the American economy, said on Wednesday: “Am I allowed to appoint myself at the Fed? I’d do a much better job than these people.”
What To Know
Trump’s Truth Social post was accompanied by an article from National Mortgage News headlined: “Fannie, Freddie regulator: Powell should cut rates or quit.”
Bill Pulte, the director of the Federal Housing Finance Agency that regulates Fannie Mae and Freddie Mac, called for Powell to quit if he did not cut short-term interest rates.
“Jay Powell is hurting the housing market by being too late to lower rates. He needs to resign, effective immediately,” he said.
Powell said at a press conference on Wednesday: “We have a longer run shortage of housing, and we also have high rates right now. I think the best thing we can do for the housing market is to restore price stability in a sustainable way and create a strong labor market.”
Trump responded on Wednesday: “If he’s worried about inflation, that’s OK, I understand that… I don’t think there’s going to be any, so far there hasn’t.”
Powell leads the Federal Open Market Committee (FOMC), and is one of more than a dozen central bank officials who vote on the bank’s interest rate. Powell’s term as chair of the Federal Reserve ends next year.
What People Are Saying
President Donald Trump said on Wednesday, referring to Fed Chair Jerome Powell: “He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”
Jerome Powell said on Wednesday: “What everyone on the FOMC wants is a good solid American economy with a strong labor market and price stability. That’s what we want. We think our policy is well positioned to right now deliver that and to be able to respond in a timely way as the data lead us around.”
Vice President JD Vance wrote on X, formerly Twitter, on June 11: “The president has been saying this for a while, but it’s even more clear: the refusal by the Fed to cut rates is monetary malpractice.”
What Happens Next
The FOMC said it will continue to monitor incoming information to assess the appropriate stance on monetary policy going forward. Powell’s term as chair of the Federal Reserve ends next year.
