Donald Trump Again Calls Jerome Powell an “Idiot,” Pressures Fed
The Federal Reserve has kept interest rates steady since last December, holding them in a target range of 4.25% to 4.50%.
Quick overview
- President Trump criticized Federal Reserve Chairman Jerome Powell for high interest rates, claiming they are harming the housing market.
- He suggested that interest rates should be cut to 1% to alleviate financial burdens, especially for young homebuyers.
- Trump expressed regret over appointing Powell, labeling him as one of his worst decisions and blaming the Fed board for not intervening.
- Despite Trump's pressure, the Federal Reserve has maintained interest rates between 4.25% and 4.50%, citing complications from tariffs he imposed.
U.S. President Donald Trump lashed out at Federal Reserve Chairman Jerome Powell and the central bank’s board, accusing them of “strangling” the housing market with high interest rates, which he argued should be cut to 1% instead of remaining at the current 4.25%.
“‘Slowpoke’ and the Fed are suffocating the housing market with their high rates, making it harder for people—especially young people—to buy a home,” Trump wrote on TruthSocial.
He went on to say that Powell was one of the worst appointments he ever made, adding, “Sleepy Joe [Biden] saw how bad he was and reappointed him anyway.”
“And the Fed board hasn’t done anything to stop this ‘idiot’ from hurting so many people. In many ways, the board is just as guilty!” he added.
Trump insisted that U.S. inflation is now “VERY LOW,” arguing that the country deserves a 1% rate, which would “save $1 trillion a year in interest.” “Cut the rates, Slowpoke!” he concluded.
Fed Holds Ground on Rates Despite Trump Pressure
The Federal Reserve has kept interest rates steady since last December, holding them in a target range of 4.25% to 4.50%.
In remarks made earlier this month, Powell defended the current stance, stating that the tariffs recently imposed by Trump had complicated the Fed’s ability to lower rates by putting upward pressure on inflation projections. The central bank has opted to hold off on any rate cuts until the full effects of the trade measures become clearer.
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