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Highlights
- Donald Trump has criticized Jerome Powell for failing to cut interest rates.
- The U.S. President brands the Fed Chair an "American disgrace" for keeping rates steady.
- The Fed is keeping interest rates steady citing Trump's tariffs as a source of macroeconomic concern.
US President Donald Trump has blasted Federal Reserve Chair Jerome Powell, calling him an “American Disgrace” for not cutting interest rates during the recent FOMC meeting. He slams Powell for being too slow with interest rate decisions.
Donald Trump Lashes Out at Jerome Powell Over Rate Cuts
As traders come to terms with the U.S. Federal Reserve’s decision to keep interest rates steady, President Trump has criticized Fed Chair Jerome Powell. Trump took to Truth Social to condemn the Fed’s decision, singling out Powell for blame.
According to Trump, Powell’s refusal to cut rates is costing the U.S. billions of dollars. He went on to brand Powell as “clueless,” adding that the rest of the Board is complicit in the decision to maintain current rates.
On Wednesday, the Fed announced it would keep interest rates unchanged following June’s FOMC meeting, much to the dismay of investors.
“He is truly one of the dumbest and most destructive people in government, and the Fed Board is complicit,” said Powell.
Trump argues that, given declining inflation figures, interest rates should be 2.5 percentage points lower. He noted that the European Central Bank (ECB) has already implemented ten rate cuts, while the U.S. continues to hold steady.
“We should be 2.5 points lower and save billions on all of Biden’s short-term debt,” Trump added. “We have low inflation. TOO LATE’s an American Disgrace.”
Fed Blames Trump Tariffs for Economic Policy Decision
In his FOMC press conference, Jerome Powell explained the Fed’s decision not to cut interest rates. The Fed Chair noted that while inflation data is trending lower, it has not yet reached the target of 2%. He blamed Trump-era tariffs for contributing to near-term inflationary pressures due to heightened trade uncertainty.
However, Powell also emphasized that the labor market is in strong health and is not currently driving inflation. He stated that the Fed will adopt a wait-and-see approach to monitor the impact of emerging inflationary risks.
Despite Powell’s caution, Trump continues to push for a rate cut. Prior to the FOMC meeting, Trump urged the Fed to reduce rates, arguing that it would allow the U.S. to finance debt at lower costs. Despite his repeated criticisms, Trump said he has no plans to fire Jerome Powell.
Bitcoin Reaction to Macroeconomic Decisions
A day after the FOMC meeting, Bitcoin is trading at $104,000 in a show of resilience, while broader markets are closely tracking BTC’s performance. The global cryptocurrency market capitalization stands at $3.2 trillion, having declined by less than 1% over the past 24 hours.
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