Donald Trump has expressed his dissatisfaction with the actions of the Federal Reserve and its chair, Jerome Powell, calling for significant cuts in interest rates.
Trump's Criticism
On Monday, Trump shared a handwritten note on the Truth Social platform, stating that interest rates should be lowered "significantly." He added that Powell and the Fed Board should "be ashamed" of their actions, indicating that they have "failed" their duties. In his note, Trump wrote:
> "Jerome – As usual, you are too late. You have cost the United States a fortune – and continue to do so – you must seriously lower interest rates!"
He also pointed out that "hundreds of billions of dollars are being lost! No inflation."
Fed's Position
However, Fed officials had planned to continue reducing interest rates once inflation slowed to its annual target of 2% in early 2025. Those steps were postponed in the first half of the year due to uncertainty created by Trump's tariff plans. Last week, Powell defended the Fed's decision to keep interest rates on hold again, stating that "patience is needed."
Future Implications
Trump continues his criticism of Powell, who was appointed to the position in 2017 and whose term will end in 2026. Previously, Trump has indicated that he was considering firing Powell, whom he nicknamed "Mr. Too Late."
Trump's criticism of the Fed highlights the tension between the former president and the chairman of the central bank. He has previously expressed hope that interest rates would be lowered to a more favorable level, yet the Fed's current position remains unchanged.
