United States President Donald Trump launched a fresh tirade against Federal Reserve Chairman Jerome Powell on Thursday, branding him a “fool” following the central bank’s decision to maintain interest rates and caution about heightened risks to inflation and unemployment.
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump posted on his Truth Social platform, renewing his criticism of the head of the independent U.S. central bank.
The Federal Reserve, on Wednesday, announced it would leave its benchmark lending rate unchanged, holding it at a range of 4.25 per cent to 4.50 per cent. The decision was backed unanimously by policymakers, who expressed concerns about mounting economic uncertainty.
Following the announcement, Powell addressed the press, highlighting the unpredictability surrounding the Trump administration’s trade policies. “There’s a great deal of uncertainty” about where the administration’s tariff strategy would lead, he said.
President Trump has been a vocal proponent of rate cuts, arguing that lower borrowing costs are necessary to support economic growth—especially as his trade agenda, including steep tariffs on Chinese imports, continues to generate market jitters. His tariff plans have fluctuated in intensity and targets, contributing to economic unpredictability.
Economists and market analysts have warned that the administration’s trade moves could result in higher inflation, increased unemployment, and a slowdown in overall growth, at least in the near term.
However, Trump dismissed these concerns in his Truth Social message, stating there was “virtually NO INFLATION” and claiming that “almost all costs” were down.
The president has previously intensified pressure on Powell, describing him last month as a “major loser” and suggesting he had the authority to remove him—though he later retracted the statement. The feud between Trump and the Federal Reserve has become a recurring issue, with Trump frequently accusing the institution of undermining his economic policies.
Despite the criticism, Powell maintained the Fed’s independence during his remarks on Wednesday. “We are always going to consider only the economic data, the outlook, the balance of risks, and that’s it,” he stated, insisting that political attacks from the president “doesn’t affect doing our job at all.”
The Federal Reserve operates under a dual mandate to manage inflation and foster maximum employment, using tools such as interest rate adjustments to steer the economy. Powell’s comments underscored the institution’s intent to base its decisions solely on data-driven analysis, despite external pressures.
With economic indicators sending mixed signals and Trump pushing for stimulus through aggressive rate cuts, the tension between the White House and the Fed is likely to remain a key focus in the run-up to the next policy review.
