President Donald Trump didn’t hold back on Wednesday, unleashing a sharp jab at Federal Reserve Chair Jerome Powell just hours before the central bank’s latest interest rate decision. “We have a stupid person, frankly, at the Fed,” Trump said. “He probably won’t cut.”
Trump has long pressured the Fed to slash rates, arguing it would boost the economy. His latest outburst came amid expectations that the Fed will leave rates unchanged again. That would mark the fourth consecutive meeting with no cuts.
The benchmark federal funds rate has been held steady in the range of 4.25% to 4.5% since December. The Fed last cut interest rates six months ago and has taken a cautious stance amid ongoing inflation concerns. But that caution isn’t sitting well with Trump or his allies.
Vice President JD Vance echoed the criticism. In a post on X, he called the Fed’s position “monetary malpractice.” “The president has been saying this for a while,” Vance wrote, “but it's even more clear now.”
Trump has been ratcheting up the pressure on Powell for weeks. After May’s jobs report came in stronger than expected, Trump took to Truth Social to vent. “‘Too Late’ at the Fed is a disaster!” he wrote. “Europe has had 10 rate cuts, we have had none.”
The former president also urged the Fed to act boldly. “Go for a full point,” Trump wrote, calling it “Rocket Fuel” for the economy. He’s betting that an aggressive cut could supercharge growth ahead of the election season.
The Fed, however, continues to signal caution. Officials have indicated they want more consistent signs that inflation is cooling before lowering rates. Some fear cutting too soon could trigger a resurgence of inflationary pressure.
Still, Trump’s message is clear: he wants Powell to act, and fast. With Europe cutting rates and political pressure mounting, all eyes are now on the Fed’s next move.