Escalating Tensions: Trump Criticizes Fed for "Ignoring" Economic Risks

President Donald Trump just publicly criticized the Chairman of the Federal Reserve America (Fed), Mr. Jerome Powell, for not acting promptly in adjusting interest rates. On the Truth Social platform, Mr. Trump called Powell “stupid” and “clueless,” while likening the conversation with Mr. Powell to “talking to a wall.” Speaking to the press on Thursday, Trump emphasized: “China lowers interest rates, the Bank of England also lowers them, everyone is reducing except for him.” He also sarcastically nicknamed the Fed Chair “Too Late Powell” (Powell Quá Muộn).

The Fed keeps interest rates unchanged despite political pressure. A day earlier, the Federal Open Market Committee (FOMC) announced it would maintain interest rates in the range of 4.25% – 4.5%, believing this is an appropriate level to balance job growth and control inflation. The Fed stated: “Economic uncertainty has increased, and the dual risks of unemployment and inflation are both on the rise.” Since December, the Fed has not changed interest rates, after having reduced it by 0.25 percentage points at the end of 2024. America’s economy remains Trump’s “support base”. Although dissatisfied with the current monetary policy, Trump believes that the American economy is strong enough to overcome any challenges. “We are very strong. What we have done will help the country not to be affected much,” he said. The debate between Trump and the Fed is expected to intensify in the context of the upcoming presidential election, with interest rates remaining the focal point of the financial markets.