With the Federal Reserve poised to release its latest policy statement, President Donald Trump sharply criticized central bank leadership Wednesday, describing Chair Jerome Powell as “stupid” and warning that the Fed’s reluctance to lower interest rates is imposing heavy costs on the US economy.
Speaking outside the White House just hours before the Federal Open Market Committee’s anticipated announcement, Trump expressed little confidence that policymakers would ease borrowing costs.
“So we have a stupid person. Frankly, you probably won’t cut today,” Trump told reporters as per CNBC. “Europe had 10 cuts, and we had none. And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”
Markets currently assign zero probability to a rate cut at the June meeting, with the Fed maintaining its target range between 4.25% and 4.50%. The central bank has signaled continued caution, citing lingering questions about economic momentum and inflation persistence.
Trump, however, has been relentless in calling for a more accommodative stance. Since returning to office in January, he has urged Powell to act quickly to reduce the cost of financing. Apart from softer inflation readings and Powell's history of being "too late," Trump has also highlighted mounting interest payments on federal debt as a top concern.
Recent Treasury data shows the US paid $776 billion in interest over the past eight months – a 7 percent increase compared with the same stretch last fiscal year. Trump has argued that even a modest reduction in rates could result in substantial fiscal relief.
“I would like to get this guy to lower interest rates, because if he doesn’t, we have to pay,” he said during a June 12 event in which he called the Fed Chair a "numbskull."
The president estimated that two percentage points of easing could save $600 billion annually.
Despite a private meeting between Powell and Trump earlier this year, tensions have escalated. Trump has repeatedly questioned the Fed’s inflation concerns and suggested Powell’s decisions are either politically motivated or personally antagonistic.
“If he’s worried about inflation, that’s OK. I understand that. I don’t think there’s going to be any. So far there hasn’t,” Trump said Wednesday. “But now we have a man that just refuses to lower the Fed rate, just refuses to do and he’s not a smart person.”
While Powell and his colleagues have maintained their commitment to independence, the pressure has intensified from within the administration. Vice President JD Vance and other officials have joined Trump in publicly advocating for rate cuts.
At one point, Trump floated the idea of assuming leadership at the central bank himself. “I’d do a much better job than these people,” he said.
Powell’s current term expires in May 2026. Trump has indicated he plans to name a successor well before that date.
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