Trump Renews Fed Criticism, Calls Powell a ‘Fool’ Over Rate Hold

TLDRDonald Trump criticized Federal Reserve Chair Jerome Powell after the Fed decided to keep interest rates unchanged.The Federal Reserve maintained the benchmark rate at 4.25 percent to 4.5 percent following its May 7 policy meeting.In a Truth Social post, Trump accused Powell of acting too late on economic signals and called him a fool.Trump argued that falling energy prices, lower grocery costs, and minimal inflation justify immediate rate cuts.The Fed has held rates steady for three straight meetings after cutting them three times in late 2024.Donald Trump strongly criticized Federal Reserve (Fed) Chair Jerome Powell after the central bank left interest rates unchanged. Trump posted his response on Truth Social following the Federal Open Market Committee’s May 7 decision. The Fed kept its benchmark rate at 4.25% to 4.5%, which aligned with previous meetings and market expectations.Trump expressed frustration with Powell’s policies and accused him of responding late to economic signals. He labeled Powell ineffective while adding a sarcastic note of personal approval. The criticism echoed Trump’s past confrontations with the central bank over rate policies.Though the Fed reaffirmed its position on holding rates, Trump insisted the economic conditions support a reduction instead. He pointed to falling energy prices, declining grocery costs, and minimal inflation as reasons for immediate cuts. Trump argued that the U.S. economy needs lower rates to continue strengthening.Trump Criticizes Fed Over Rate DecisionThe Fed concluded its two-day meeting by maintaining interest rates within the same target range since January. This decision extended the pause after the rate cuts introduced late in 2024. The Fed has kept the rate steady across three consecutive meetings in 2025.BREAKING: President Trump says “Too Late Jerome Powell is a fool” after the Fed holds interest rates steady.Trump says there is “virtually no inflation” with “tariff money pouring into the US.” pic.twitter.com/Bx0hEVfmrt— The Kobeissi Letter (@KobeissiLetter) May 8, 2025While markets expected no change, Trump’s comments brought renewed political attention to the Fed’s monetary policy. Powell has emphasized a measured approach, even as political leaders voice strong opinions. Trump’s remarks intensified pressure on the Fed to respond more aggressively to perceived economic shifts.The central bank began cutting rates in late 2024 after a long period of rate hikes aimed at slowing inflation. Since then, the Fed has opted to monitor economic trends without rushing into further changes. Powell has repeatedly stressed that long-term stability guides the committee’s rate decisions.Economic Growth Claims Clash With DemandsTrump insisted that the current economy supports lower borrowing costs and rapid policy adjustments. He justified low inflation, strong tariff revenue, and dropping commodity prices. Trump claimed these conditions contradict Powell’s decision to hold the rate steady.Economist Peter Schiff responded to Trump’s statements by highlighting contradictions in his economic narrative. Schiff noted that Trump promotes strong economic growth while also demanding lower rates. He argued that such mixed messages weaken the credibility of Trump’s monetary demands.Trump’s ongoing criticism of Powell follows a long pattern of challenging the Fed’s independence. Though Trump praised Powell’s appointment during his presidency, his recent tone has shifted dramatically. Despite past support, Trump now accuses Powell of failing to act in the nation’s best economic interest.The post Trump Renews Fed Criticism, Calls Powell a ‘Fool’ Over Rate Hold appeared first on CoinCentral.