US President, Donald Trump lashed out at Federal Reserve Chair Jerome Powell on May 7 after the central bank announced it would keep interest rates unchanged.
At a press conference, Powell said the Fed is in “no hurry” to cut rates—remarks that quickly drew a fiery response from the former president.
In a Truth Social post, Trump wrote: “‘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!”.
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Trump has repeatedly criticised Powell in the past, at one point saying, “his termination cannot come fast enough,” before later clarifying he has “no intention of firing” the Fed chair.
The Federal Reserve has now kept its key interest rate steady for three consecutive meetings. Powell cited economic uncertainty as the main reason for maintaining the current policy.
“We are comfortable with our policy stance. We think right now the appropriate thing to do is to wait and see how things evolve. There’s so much uncertainty,” Powell said during the May 7 press conference.
Trump’s trade tariffs have sparked concerns about inflation and rising consumer prices—issues that are typically countered with interest rate hikes.
Simultaneously, the ongoing trade tensions have fueled fears of slowing economic growth and a potential recession, scenarios where interest rate cuts are often used to stimulate the economy.
“It’s really not at all clear what it is we should do,” Powell acknowledged.
(USA TODAY)
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