Trump Calls Fed Chair Powell 'Numbskull' in Latest Attack to Lower Interest Rates

What Happened?

President Donald Trump on Thursday criticized Fed Chairman Jerome Powell, calling him 'numbskull' as he pushes for the central bank to lower interest rates.

While speaking to lawmakers and other attendees at a White House bill signing, President Trump reiterated his frustrations over Powell's lack of reasoning for rate cuts.

He claimed lowering rates by 2 percentage points would save the U.S. $600 billion per year, but added, 'We can’t get this guy to do it.'

Trump said he was 'OK' with the Fed raising rates if inflation was going up.

'But it’s down,' he noted. 'I may have to force something.'

Although Trump said, 'I don’t know why it would be so bad' if he fired the Fed chairman, the suggestions of forcing something on the Fed appeared unclear.

He called Powell 'too late' surrounding the belief he should have already lowered rates.

Why it Matters

Trump’s latest comments toward Powell have been consistent within his administration.

It's reportedly the third time in two days a member of his team has targeted the Fed's leader.

Commerce Secretary Howard Lutnick told Fox News Wednesday, 'It’s unbelievable how much we would save if [Powell] did his job and he cut interest rates.'

Emphasizing that Powell has 'got to do his job,' Lutnick added, 'The economy is ready for it. It’s easy. Inflation is low.'

Earlier Wednesday, Vice President JD Vance said in a post on social platform X, 'The refusal by the Fed to cut rates is monetary malpractice.'

Trump also chimed in on Wednesday and suggested that the Fed should slash rates 'one full point.'

The remarks came following the release of the Bureau of Labor Statistics' latest report.

‘WOULD PAY MUCH LESS INTEREST ON DEBT COMING DUE,’ he said. ‘SO IMPORTANT!!!’

The Consumer Price Index (CPI) was reportedly forecast to rise 2.5% in May.

Instead, it marked lower expectations than 0.2% in monthly price gains economists projected.

The central bank kept its benchmark interest rate unchanged following its latest May meeting citing 'uncertainty about the economic outlook.'

Experts said the Fed's May meeting marked an unusual period in which Trump's tariff moves had significantly impacted global markets.

Federal Reserve governor Adriana Kugler warned that Trump's tariff policies could still reverse two years of inflation progress made.

How it Affects You

Powell has maintained his position that the Fed will 'wait for greater clarity' before considering future cuts.

But recent economic readings have begun to question why the Fed hasn't made a move to cut rates.

Markets were reportedly unmoved by Trump’s remarks toward Powell, but investors have still mostly prepared for no rate cuts from the Fed in June.

Trump and his allies have ramped up their pressure as some economists have predicted that stagflation could be worse for the U.S. economy.