Hours before the Federal Reserve’s interest rate decision on Wednesday, President Donald Trump sharply criticized Chair Jerome Powell, labeling him “stupid” and expressing skepticism about a potential rate cut.
Trump argued that the Fed’s benchmark rate, currently set at 4.25%-4.50%, should be reduced by at least two percentage points to align with actions taken by European central banks.
“Europe had 10 cuts, and we had none,” Trump stated in remarks outside the White House. His comments reflect ongoing tensions with Powell, whom he has repeatedly targeted for not easing monetary policy.
Trump’s remarks came just before the Federal Open Market Committee (FOMC) was set to release its latest statement on interest rates and provide updates on economic projections.
Market indicators suggest no rate cut is expected at this meeting, with the next potential adjustment forecasted for September.
The president warned that high interest rates are burdening the U.S. economy, claiming they cost “hundreds of billions” in financing expenses.
Despite Trump’s assertion that inflation remains under control, Powell and Fed officials have cited uncertainty, including the unclear long-term effects of Trump’s tariffs, as a reason for their cautious approach.
Trump’s criticism of Powell extends beyond policy disagreements, with the president suggesting personal animosity may influence the Fed chair’s decisions.
“I think he hates me, but that’s OK,” Trump said.
While the two recently met at the White House, details of their discussion remain undisclosed.
Powell has emphasized the Fed’s independence, vowing to resist political pressure from Trump and other administration figures, including Vice President JD Vance.
With Powell’s term set to expire in May 2026, Trump has indicated plans to name a successor, even floating the idea of appointing himself as Fed chair.