President Trump sharply criticized Federal Reserve Chairman Jerome Powell on Thursday, blasting him as “a FOOL” in a fiery Truth Social post after the central bank opted to keep interest rates steady. Trump accused Powell of being out of touch with the current economic reality and claimed inflation is all but gone.
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump wrote. “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!”
The Federal Reserve announced Wednesday it would maintain its benchmark interest rate between 4.25% and 4.5% — the third straight meeting where it declined to cut rates. The decision drew immediate backlash from the White House, as Trump and his economic team argue that conditions justify a loosening of monetary policy.
While the Fed’s official statement described economic growth as “solid,” it also warned that risks of both inflation and unemployment have risen. Powell downplayed concerns over a slight first-quarter GDP contraction, attributing it to a temporary spike in imports and suggesting the final number may be revised upward.
But the Trump administration sees things differently.
“Virtually no inflation” is the mantra coming from 1600 Pennsylvania Avenue. Trump officials cite plummeting energy prices, grocery costs that have stabilized or declined, and a sharp increase in tariff revenue as evidence that the Fed is misreading the economy.
Critics, however, warn that the Fed is in a tough spot — caught between fears of reigniting inflation and concerns over a potential recession. Some worry that tariffs could spark price hikes, while others believe the bigger risk lies in a slowdown of economic growth.
Powell, for his part, insists the Fed’s independence remains intact despite Trump’s rhetoric. “We are always going to use our tools to foster maximum employment and price stability for the benefit of the American people,” he said in a post-meeting press conference. “We are always going to consider only the economic data, the outlook, the balance of risks — and that’s it.”
Trump’s criticism of Powell has become a recurring theme, especially as interest rates remain high amid what his administration views as improving economic conditions. Although speculation swirled last month that Trump might move to remove Powell from office, the president shut those rumors down.
“No, no, no. Why would I do that? I get to replace the person in another short period of time,” Trump told reporters.
That timeframe could prove decisive. Powell’s term expires next year, giving Trump a chance to name a new chair more aligned with his pro-growth, pro-tariff, and pro-cutting agenda.
Trump allies argue the Fed is moving too slowly to adjust to the new economic landscape. They claim the president’s combination of tax cuts, deregulation, and aggressive tariff policy is beginning to work — encouraging domestic investment, boosting manufacturing, and keeping inflation at bay.
Some Fed officials, like Governor Christopher Waller, concede that prices may rise slightly due to tariffs but call it a one-off event, not the start of a new inflation cycle. Others remain cautious, pointing to consumer surveys showing rising inflation expectations.
The standoff between the Fed and the White House is increasingly shaping the narrative around America’s post-Biden economy. Trump wants action — and a rate cut. Powell wants patience.
With each passing month, the pressure builds. And with an election looming in 2026, economic momentum — and who gets credit for it — may hinge on which man gets his way.
