President Donald Trump on Thursday criticized Federal Reserve Chairman Jerome Powell a day after the central bank’s decision not to lower interest rates.
“’Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump wrote in a post on Truth Social. “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!”
The Fed on Wednesday announced that it will leave its benchmark interest rate unchanged as policymakers continue to monitor inflation and the labor market amid elevated levels of economic uncertainty.
WITH THE ECONOMIC TUMULT, A SERIOUS CONCERN HAS EMERGED: STAGFLATION
The central bank’s decision leaves the benchmark federal funds rate at a range of 4.25% to 4.5%.
The Federal Open Market Committee, which guides the central bank’s monetary policy moves, noted in its announcement that “[u]ncertainty around the economic outlook has increased further” and the Fed is monitoring risks to both sides of its dual mandate, adding that risks of higher unemployment and higher inflation have risen.
Powell said at a Wednesday press conference that Trump’s criticism and calls for rate cuts do nOt affect the central bank from doing its job “at all.”
“We’re always going to do the same thing, which is we’re going to use our tools to foster maximum employment and price stability for the benefit of the American people,” Powell said. “We’re always going to consider only the economic data, the outlook, the balance of risks. And that’s it. That’s all we’re going to consider. So it really doesn’t affect either our job or the way we do it.”
Trump most recently called on the Fed to lower rates last week after the release of the April jobs report, citing lower gasoline and grocery prices and strong employment numbers.
INFLATION SLOWED SLIGHTLY TO 2.8% IN FEBRUARY AHEAD OF FEDERAL RESERVE MEETING
The Fed’s latest decision comes after the central bank left rates at the 4.25% to 4.5% level at its two previous meetings in January and March, which followed three consecutive rate cuts at its preceding meetings – which involved a 50-basis-point cut in September and a pair of 25-basis-point reductions in November and December.
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