Trump Slams Powell as a “Disaster” and Demands Interest Rate Cuts

Trump criticizes Powell

Demands interest rate cuts

Fed defends its independence

President Donald Trump launched a fresh offensive on Friday against Federal Reserve (Fed) Chairman Jerome Powell, whom he called a “disaster” over his handling of monetary policy.

In two early-morning posts on his Truth Social network, Trump harshly criticized the Fed’s decision not to lower interest rates yet.

Although he didn’t mention Powell by name, he used his usual nickname: “Too Late,” to refer to the economist.

“If ‘Too Late’ at the Fed CUT, we would drastically reduce interest rates, both short and long-term, on maturing debt,” Trump wrote.

The President Demands Immediate Interest Rate Cuts

Trump criticizes Powell and demands rate cuts – Photo: Shutterstock

The Republican leader claimed that inflation has virtually disappeared in the United States and that maintaining high rates is unjustifiable.

“There is practically no inflation (anymore), but if it comes back, RAISE THE RATE TO COUNTER IT. Very simple!” he argued.

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He also stated that the delay in establishing interest rate cuts is costing the country “a fortune.” “Borrowing costs should be MUCH LOWER!” exclaimed the president.

In another message posted just minutes earlier, Trump compared U.S. monetary policy to that of Europe.

Poor Job Data Increases Pressure on the Fed

“‘Too Late’ at the Fed is a disaster. Europe has had 10 rate cuts, we’ve had none. Despite him, our country is doing great,” he noted.

Currently, interest rates remain between 4.25% and 4.5%, and the next Federal Open Market Committee (FOMC) meeting is scheduled for June 17 and 18.

At that meeting, they will evaluate whether changes to the rates are necessary—something Trump has been demanding for weeks.

Two days earlier, the president had already called for a cut, citing low private-sector job growth as justification, according to EFE.

A History of Clashes with Jerome Powell

A report from ADP revealed that only 37,000 jobs were created in May, compared to the 110,000 that had been forecast.

For Trump, this figure is further proof that current conditions call for immediate monetary stimulus. His clash with Powell is nothing new.

During his first term, the then-president had multiple run-ins with the Fed chairman, whom he once called a “fool.”

He even threatened to fire him, although the law prevents him from doing so. In his latest attacks, Trump has implied that he knows more about monetary policy than Powell himself.

The Fed Maintains Its Independent Stance

Last week, the two met face-to-face for the first time since the Republican’s return to power in January of this year.

Despite the tense history, the Fed has defended its autonomy and emphasized that decisions are based on technical criteria, not politics.

Jerome Powell himself has avoided responding publicly to the president’s attacks. In past statements, he made it clear that the Fed will act “when the time is right” and that its goal remains economic stability.

Meanwhile, Trump continues to apply pressure, urging the central bank to act as soon as possible.

The Federal Reserve has indicated that “one or two cuts” could occur by the end of the year.

However, decisions will be based on economic data, especially employment trends and inflation.

The impact of Trump’s comments on the markets has been limited, but his persistence could increase tensions between the executive branch and the regulatory body.

Donald has made it clear that his economic strategy relies on low rates and greater liquidity to spur growth. And in his trademark style, he summed it up again on social media: “Very simple!” reported EFE.