The US president labeled Powell “a stubborn MORON” in a series of critical social media posts on Friday, days after the Fed maintained interest rates for the fifth consecutive time.
This move comes as Trump faces increased scrutiny over the impact of his aggressive economic policy, with the White House advancing plans for new tariffs next week.
Hours before the federal government released data highlighting a significant decline in the jobs market, Trump blamed the Fed and urged it to change its stance.
“Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, NOW,” Trump wrote on Truth Social. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”
The Fed chair does not unilaterally set interest rates, which are decided by its rate-setting Federal Open Market Committee. Presidents typically respect its independence, leaving the central bank to make an objective decision about interest rates without political interference.
“Too Little, Too Late. Jerome ‘Too Late’ Powell is a disaster,” Trump wrote after the lackluster jobs report. “DROP THE RATE! The good news is that Tariffs are bringing Billions of Dollars into the USA!”
Powell has argued that the Fed should wait to see the impact of Trump’s tariff strategy before cutting rates. However, Trump has increasingly accused Powell of damaging the economy.
Two members of the Fed’s rate-setting committee dissented from its other policymakers’ call to hold rates steady this week, and published their reasons on Friday. Trump celebrated this, claiming: “STRONG DISSENTS ON FED BOARD. IT WILL ONLY GET STRONGER!”
On Friday afternoon, another member of the committee abruptly resigned. Adriana D Kugler, whose term was set to expire in January, announced she would step down next week.
She did not provide a reason for her move and will return to Georgetown University as a professor in the fall.
Her resignation creates a vacancy for the White House to fill.
Source: https://www.theguardian.com/business/2025/aug/01/trump-jerome-powell-tariffs-federal-reserve
