Donald Trump Calls Jerome Powell a “Clueless Fool” After Fed Decision
The Fed’s cautious tone contrasts sharply with Trump’s aggressive messaging, underscoring the growing political and economic tensions.
Quick overview
- Federal Reserve Chair Jerome Powell and President Donald Trump are engaged in an escalating public feud over interest rate decisions.
- The Federal Reserve announced it would keep interest rates unchanged at 4.25%-4.5%, prompting immediate criticism from Trump.
- Trump labeled Powell a 'FOOL' on social media, expressing frustration over the Fed's cautious approach amid low inflation.
- The contrasting messages from the Fed and Trump highlight increasing political and economic tensions as the election season approaches.
Federal Reserve Chair Jerome Powell and U.S. President Donald Trump — long-time adversaries — continue to escalate their feud, with fresh public attacks adding fuel to the fire.
On Wednesday, the Federal Reserve announced it would leave interest rates unchanged, maintaining the benchmark range at 4.25%–4.5%, where it has stood since December. The decision, aimed at balancing growing risks of both inflation and unemployment, drew immediate criticism from Trump.
Taking to his social media platform, Truth Social, the president lashed out at Powell, calling him a “FOOL who has no clue.” He added sarcastically, “Other than that, I like him very much!”
“‘Too late’ Jerome Powell is a FOOL who has no clue. Other than that, I like him very much! Oil and energy prices are very low, almost all costs (groceries and ‘eggs’) are virtually down, NO INFLATION, and tariff money is flowing into the U.S. THE EXACT OPPOSITE OF ‘TOO LATE’! ENJOY!” Trump wrote.
Trump has previously floated the idea of firing Powell — a rare move against a sitting Fed chair — for not cutting interest rates quickly enough. Although he ultimately backed down, his public pressure on Powell has remained constant.
The Fed Holds Steady Amid Growing Economic Risks
In its official statement, the Fed cited heightened risks of both rising inflation and increased unemployment as reasons to keep rates on hold. In the post-meeting press conference, Powell emphasized that no rate cuts are guaranteed and that uncertainty remains high.
“If the recently announced tariff increases are sustained, they are likely to drive inflation higher, slow economic growth, and increase unemployment,” Powell warned. “The appropriate stance is to wait and see.”
The Fed’s cautious tone contrasts sharply with Trump’s aggressive messaging, underscoring the growing political and economic tensions ahead of a contentious election season.
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