Trump Slams Fed Chair Powell as “Fool” in Fiery Rate Rant: Is a Showdown Looming?
Washington, D.C. – President Donald Trump unleashed a scathing attack on Federal Reserve Chair Jerome Powell today, May 8th, 2025, branding him a “fool” who “doesn’t have a clue” in blistering Truth Social Post. The outburst came in response to the Fed’s decision to hold interest rates steady at 4.25% to 4.5%, a move Trump claims ignores the economic realities of his administration’s policies.
Trump argued that with inflation cooling, oil, energy, and grocery prices dropping, and tariff revenues flooding federal coffers, Powell should slash rates immediately to cushion the economy against potential slowdowns triggered by his aggressive trade agenda, including “Liberation Day” tariff program. “Other than that, I like him very much!” Trump quipped sarcastically, underscoring his frustration with the central bank’s cautious stance.
The comments mark the latest chapter in Trump’s ongoing feud with Powell, whom he has frequently pressured to align monetary policy with his economic vision. Despite the heated rhetoric, Trump recently confirmed he has no plans to fire Powell before his term expires in May 2026, though today’s remarks suggest tensions remain high. The Federal Reserve’s decision to maintain rates reflects concerns about the uncertain economic fallout from Trump’s tariffs, which have rattled global markets and raised fears of inflation and reduced growth.
Analysts warn that Trump’s public attacks could further complicate the Fed’s efforts to balance price stability and economic expansion. As Wall Street digests the latest developments, investors are bracing for potential volatility. Some see Trump’s push for lower rates as a bid to boost growth ahead of his trade war’s impact, while others fear his criticism undermines the Fed’s independence, risking long-term economic stability.
With U.S.- China trade talks looming and markets on edge, Trump’s war of words with Powell adds another layer of uncertainty to an already turbulent financial landscape. Will the President’s pressure tactics force a policy shift, or is this just another salvo in a battle that’s far from being over? Only time will tell.
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