President Trump escalated his attacks on Federal Reserve Chair Jerome Powell on Thursday, dubbing the central banker a “moron” for keeping interest rates steady.
Mr. Trump, writing on Truth Social, said the decision not to cut rates would harm the country.
“We should have a substantially lower rate now that even this moron admits inflation is no longer a problem or threat,” Mr. Trump wrote of Mr. Powell. “He is costing America Hundreds of Billions of Dollars a year in totally unnecessary and uncalled for INTEREST EXPENSE.”
The Federal Open Market Committee on Wednesday kept its benchmark rate at 3.5%-3.75%.
Central bankers wanted to see how a trio of recent cuts would affect the economy, ignoring Mr. Trump’s push to reduce rates again.
The Fed is trying to balance lingering concerns about inflation, which argue against another cut, with worries about a sluggish job market.
Mr. Trump says lower rates will help the U.S. flourish alongside his economic agenda, which includes tariffs on foreign goods, deregulation and tax cuts.
He says inflation is cooling faster than people think, so there is no reason to keep rates high compared to other nations.
“The Fed should substantially lower interest rates, NOW! Tariffs have made America strong and powerful again, far stronger and more powerful than any other Nation,” Mr. Trump said.
Mr. Powell on Wednesday refused to comment on the president’s criticism, though he argued in favor of the Fed’s independence. He said central banks in all free and democratic nations must act without political interference.
Mr. Powell’s term ends in May, so Mr. Trump is interviewing candidates to replace him and should announce his pick soon. The Senate must confirm the nominee.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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