Trump calls Jerome Powell ‘dumb’ and ‘destructive’ after Fed decision

President Trump on Thursday labeled Federal Reserve Chairman Jerome Powell an “American disgrace” after the central bank refused to cut interest rates one day earlier.

Mr. Trump has been lobbing barbs and nicknames at Mr. Powell for months, though his latest social media post was especially cutting.

“He is truly one of the dumbest, and most destructive, people in Government, and the Fed Board is complicit,” the president wrote on Truth Social after earlier in the year calling him a “total stiff.”

The Federal Open Market Committee decided Wednesday to keep the benchmark rate at 4.25% to 4.5%, given the uncertainty around Mr. Trump’s trade policies and the rate of inflation.

The Fed is on track for two rate cuts later in the year, but it’s raising concerns about possible slower growth and tariff-related price hikes that could be temporary or long-lasting.

“For the time being, we are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Mr. Powell said.

The Fed’s reluctance to lower rates is infuriating Mr. Trump, who says American borrowers deserve better terms while he implements an aggressive economic agenda of tariffs on imports and cuts to deregulations and taxes.

“Europe has had 10 cuts, we have had none,” Mr. Trump wrote Thursday.

Others said the Fed acted prudently, given the difficult forecasting situation it’s in.

“I thought what the [Fed] said was both predictable and reasonable,” Lawrence Summers, a top economic official in the Clinton and Obama administrations, wrote Thursday on X. “They said you can’t be changing monetary policy with the uncertainty that we have right now. They were right to signal they were being cautious about future changes.”

The Fed is an independent agency supposed to be free from direct political pressure. The president appoints a Fed chairman every four years but doesn’t have the authority to fire him or her.

Mr. Powell’s term as chair ends in May 2026. Despite speculation, Mr. Trump has said he would not try to oust Mr. Powell.

Instead, the president is railing against him in personal terms, often using the moniker “Too Late” instead of Mr. Powell’s name.

“We have LOW inflation! TOO LATE’s an American Disgrace!” he wrote.

Mr. Trump said interest rates should be a full 2.5 points lower.

“‘Too Late’ Jerome Powell is costing our Country Hundreds of Billions of Dollars,” the president wrote.

Mr. Powell said the U.S. economy is healthy, with an unemployment rate of 4.2% and inflation at 2.4% over the past 12 months.

However, he says the Fed needs to take it slow because it could be caught between controlling inflation and spurring economic growth due to tariffs and other economic policies. 

Mr. Powell brushed off questions Wednesday about his status vis-a-vis Mr. Trump and its impact on markets, saying the open market committee is laser-focused on maintaining a “good, solid” economy with a strong labor market and price stability.

“That is what matters to us,” he said. “Pretty much, that’s all that matters to us.”

Asked if he would stay on as a Fed governor when his term as chair ends, Mr. Powell said he was focused on the current data.

“I’m not thinking about that,” he said before pointing to papers in front of him. “I’m thinking about this.”