Trump Slams Fed Chair Powell After Rates Held Steady for 4th Consecutive Time

What Happened?

President Donald Trump renewed his criticism against Federal Reserve Chair Jerome Powell on Thursday after the central bank kept rates steady for the fourth consecutive time.

The president took to Truth Social in his latest remarks calling Powell 'too late' and 'destructive' as pressure continues to build for lower interest rates.

'Jerome Powell is costing our country hundreds of billions of dollars. He is truly one of the dumbest, and most destructive, people in government, and the Fed Board is complicit,' Trump said.

In Trump's strong opinion, he pointed to other countries such as Europe that have conducted a number of rate cuts compared to the U.S.

'Europe has had 10 cuts, we have had none,' he added. 'We should be 2.5 points lower and save $BILLIONS on all of Biden’s short-term debt. We have LOW inflation!'

On Wednesday, Powell reportedly stated, 'For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policies.'

Trump said that he intends to announce his next Federal Reserve chair pick 'very soon' as Powell's term is set to end in May of 2026.

Why it Matters

Powell and Trump's relationship continues to be rocky following recent verbal attacks of being called 'numbskull' over the failed attempts at lowering rates.

These frustrations come during a time when the U.S. economy is experiencing the results of stagflation.

Top economists have reportedly warned it's a concerning direction the U.S. is headed for that the Fed cannot fix.

But Trump has claimed that lowering rates by 2 percentage points would save the U.S. $600 billion per year and still passes blame in the direction of Powell.

Vice President JD Vance had previously stated 'the refusal by the Fed to cut rates is monetary malpractice.'

The markets reportedly expected Powell’s decision, which did not come as a surprise.

Trump’s criticism of Powell has been consistent within his administration, despite the looming impact economists still fear could result from his tariff policies.

The Federal Reserve warned that Trump's tariff policies could reverse two years of progress made toward inflation.

It's a tricky situation as recent reports highlight the Consumer Price Index (CPI) marked lower expectations than what economists projected to rise in May.

How it Affects You

Nonetheless, the central bank has held its benchmark steady once again.

While keeping things unchanged following 'uncertainty about the economic outlook,' it can also run the risk of keeping the economy stagnant as a possible worse alternative.

The global markets are closely watching as cuts are still hoped for in 2025.

It's even more critical as the Department of Treasury will need to refinance nearly one-third of the more than $36 trillion in U.S. debt owed, according to reports.