Trump is bashing Jerome Powell again after the Fed keeps interest rates steady

Another Fed gathering has passed without a alteration successful involvement rates, and the president is erstwhile again displeased.

After the US cardinal slope and Fed Chair Jerome Powell opted to support the benchmark complaint level connected Wednesday, Donald Trump took to Truth Social to explicit dismay.

"Jerome Powell is simply a FOOL, who doesn't person a clue," Trump wrote connected Truth Social, referring to the cardinal slope chairman. He added: "Oil and Energy mode down, astir each costs (groceries and 'eggs') down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF 'TOO LATE!'"

Trump has heaped disapproval connected the Fed brag successful caller months for not lowering borrowing costs, adjacent commenting that helium was looking into firing Powell earlier his word is up successful 2026. Trump backed disconnected from that presumption arsenic markets balked but has kept up his critiques.

His latest comments travel Wednesday's meeting, which ended with the national funds complaint unchanged astatine 4.25%-4.50%. Despite the president's claims of "virtually nary inflation," Powell said above-target ostentation contributed to the pause, alongside broader uncertainty implicit what's to travel this twelvemonth amid Trump's tariffs.

"If the ample increases successful tariffs that person been announced are sustained, they're apt to make a emergence successful inflation, a slowdown successful economical maturation and an summation successful unemployment," Powell acknowledged during the property conference, emphasizing that rates are successful a coagulated spot to hold and see.

Rates tin boost the economy, but lowering them prematurely could spur caller inflation. Low maturation combined with precocious inflation—a concern known arsenic stagflation—is a worst-case script for cardinal bankers due to the fact that they cannot respond to some astatine once.