While the Federal Reserve has yet to announce its interest rate decision, President Donald Trump lambasted Chairman Jerome Powell once again.
“We have a stupid person, frankly, at the Fed, who probably won’t cut [interest rates] today,” Trump said at the White House. “Europe had 10 cuts, and we had none. And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”
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Trump named Powell to the position back in 2018, but has been a fierce critic this year. Interest rates remain at an elevated 4.25% to 4.50% even as inflation has fallen near the Fed’s 2% target rate. Market volatility and uncertainty from Trump’s tariffs are believed to be the reasons for Powell’s wait-and-see approach.
Trump’s pressure campaign on Powell in focus ahead of Fed interest rate decision
Trump has vowed not to fire Powell but noted Wednesday that the chairman’s term ends in nine months and indicated he will not renominate him.
“He gets out in about nine months,” Trump said. “He gets, fortunately, terminated [in nine months.] Biden reappointed him. I don’t know why that is, but I guess maybe he was a Democrat.”
According to the CME Group’s FedWatch tool, investors see a 99.9% probability that the Fed will hold its interest rate target steady. That was enough for the president to criticize Powell preemptively and joke that he should appoint himself to the role instead.
“He’s done a poor job,” Trump said. I think he hates me, but that’s ok. I’ve been so nice to him, fellas. … I do it every way in the book. I’m nasty, I’m nice. Nothing works.”