After the central bank defied economic reality and refused to cut interest rates, President Trump slammed Federal Reserve Chair Jerome Powell as “a FOOL.”
The Federal Reserve’s (Fed) decision, which keeps rates at a punishing 4.25% to 4.5%, ignores falling energy costs and misrepresents the impact of the president’s strategic tariff policies on the American economy.
President Trump took to Truth Social to voice his frustration with Powell’s leadership at the Fed, pulling no punches in his assessment of the central banker’s decision-making abilities.
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much!” the president posted.
The Federal Reserve voted to maintain its benchmark interest rate between 4.25% and 4.5%.
It has remained at that point since December despite growing calls for relief for American businesses and homebuyers.
Powell cited concerns about economic uncertainty created by tariffs, ignoring the positive economic effects these policies have already demonstrated in protecting American workers and industries.
President Trump directly challenged Powell’s inflation concerns, pointing out the “exact opposite” reality on the ground.
The president highlighted falling energy costs as evidence against the Fed’s doom-and-gloom economic outlook.
“Too Late” Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and “eggs”) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF “TOO LATE!” ENJOY!
From…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) May 8, 2025
He also questioned Powell’s understanding of real economic conditions affecting everyday Americans.
These observations undermine the credibility of the Fed’s decision-making process and suggest political motives may be at play.
Powell, who claims to base decisions solely on economic data rather than political pressure, was originally appointed by President Trump but later reappointed by Joe Biden in 2022.
This crossover appointment raises questions about whether Powell’s loyalties now lie with the previous administration’s economic agenda rather than with what is best for American prosperity.
Despite his harsh criticism, President Trump reassured markets by confirming he has no intention of firing Powell, even while describing him as a “total stiff.”
Many Americans find the Fed’s refusal to lower rates particularly frustrating, as they struggle with higher mortgage rates and business financing costs.
Financial experts increasingly question whether political considerations have compromised the Fed’s independence.
While Powell maintains his decisions are data-driven, the selective interpretation of economic indicators suggests otherwise.
With inflation concerns overblown and energy costs declining, many economists aligned with President Trump’s policies see the rate decision as unjustifiable on purely economic grounds.
The continued high interest rates particularly hurt middle-class Americans trying to purchase homes or expand small businesses.
These are the backbone of the president’s supporter base, who have already been squeezed by years of Biden’s economic policies.
