Former President Donald Trump has publicly criticized Federal Reserve Chairman Jerome Powell, calling him a “fool” after the central bank decided to keep interest rates steady. This remark comes amidst ongoing tensions between the two figures, which have been marked by Trump’s frequent derision of Powell’s leadership.
In a post on Truth Social, Trump expressed his discontent with Powell’s performance, stating, “Too Late. Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF ‘TOO LATE!’ ENJOY!” His remarks underscore disturbing questions about the economic policy choices of the Powell era. They cover everything from the effects of tariffs on the overall economy,
Despite his criticisms, Trump clarified in late April that he had “no intention” of firing Powell, emphasizing that the chairman’s position is secure until at least May 2026, when Powell’s term ends. Trump’s earlier remarks had stirred fears in the markets regarding the possibility of Powell’s dismissal.
Just last week, the Federal Reserve made the historic decision to not further lower interest rates. This decision has been driven by continued economic instability, particularly with regard to tariff policy. In a response to Trump’s criticisms during a press conference, Powell reinforced the Fed’s commitment to its dual mandate of fostering maximum employment and price stability. He stated, “We are always going to do the same thing, which is we are going to use our tools to foster maximum employment and price stability for the benefit of the American people.”
The duo’s stormy partnership since Powell’s appointment has been marked by a flurry of public trouncings. He has continuously questioned Powell’s competence in managing the nation’s monetary policy, expressing doubts about his ability to navigate complex economic challenges. The former president has paused most high tariffs recently, indicating a strategic shift that could influence future economic conditions.
Jerome Powell isn’t out to destroy the economy. He has even been clear that no political pressures are going to deter the Federal Reserve from its mission. He reassured the public that Trump’s criticisms would not affect the central bank’s operations “at all.” Yet, as both men awkwardly manage the ropes of their Zhengyou, the stakes for U.S. economic policy are being carefully observed.