President Trump is again criticizing Federal Reserve Chair Jerome Powell for not lowering interest rates. He’s called Powell a “fool” and said he “doesn’t have a clue.”
Fed Holds Steady on Interest Rates
The Federal Open Market Committee (FOMC) recently decided to keep interest rates where they are, between 4.25% and 4.5%. They explained that this rate is best for keeping employment high while also controlling inflation. The Fed noted increased uncertainty about the economic outlook and acknowledged the risks of both higher unemployment and higher inflation. They’ve held rates steady since December, when a small rate cut was implemented.
Trump’s Criticism
Trump complained that talking to Powell is “like talking to a wall,” pointing out that other countries like the Bank of England and China have cut their interest rates. He even gave Powell the nickname “Too Late Powell,” saying the Fed chair is always too slow to react. However, Trump also expressed confidence in the strength of the US economy, suggesting that the Fed’s decision might not have a significant impact.