Trump Calls Fed Chair Powell A ‘Fool’ After Interest Rates Hold Steady Due To Concerns About Tariffs

The Federal Reserve decided on Wednesday to hold interest rates steady, at 4.25 percent to 4.5 percent, a move President Donald Trump has strongly opposed.

Federal Reserve Chair Jerome Powell cited a solid labor market and low inflation as justification for the decision. He also pointed to the ongoing uncertainty around trade and tariff policy. In a press conference, Powell said, “There’s a great deal of uncertainty about…where tariff policies are going to settle out and also, when they do settle out, what will be the implications for the economy, for growth and for employment.”

The Federal Open Market Committee’s decision on Wednesday marked the third consecutive meeting in which rates were held steady. In the latter half of 2024, the Fed cut rates three times in response to shifting economic conditions but has since paused further reductions.

Consumer confidence has dropped to its lowest level in four years due to the tariffs.

Trump expressed his frustration in a Truth Social post, writing, “Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue.” He added that inflation was virtually nonexistent, oil and grocery prices were falling, and tariff revenue was “pouring” into the U.S. Trump has for months pushed the Fed to slash interest rates, arguing that doing so would boost growth amid his aggressive trade campaign, especially against China.

Just last week, Trump urged, “The Fed should lower its rate!!!” and previously called it the “PERFECT time” for Powell to act.

Despite the public rebukes, Trump has denied reports that he intends to fire Powell, even as monetary policy quarrels have intensified within the White House.

While Trump maintains that tariffs are strengthening the U.S. economy, he has recently acknowledged that American consumers may face higher prices and encouraged them to “buy less” to adapt.

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Article by Evelyn Qiu