By Charles Switzer
2:52am PDT, May 10, 2025
Trump's Continued Attacks on Jerome Powell
President
Donald Trump has been relentlessly critical of Federal Reserve Chairman
Jerome Powell, especially after Powell resisted Trump's repeated demands to lower interest rates.
Over the past few weeks, Trump has voiced his displeasure with Powell, even suggesting his "termination" following remarks Powell made about the negative impact of Trump's tariff policies.
Despite Trump's continued pressure, Powell confirmed there would be no rate cut after the Federal Open Market Committee's meeting on Wednesday, May 7. This announcement prompted Trump to take to Truth Social to once again attack Powell.
Here's everything you need to know about the Powell-Trump showdown.
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Trump's Truth Social Post
On Thursday, May 8, President Donald 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!" he added.
In essence, Trump's comments reflect his ongoing frustration with Powell's refusal to lower rates and his belief that the current economic situation does not warrant such actions.
Powell's Press Conference Assessment
Following the Federal Open Market Committee meeting, Jerome Powell offered a grim outlook on the economic effects of
Donald Trump's tariff policies.
He explained that the tariffs' scope and scale could increase risks related to higher inflation and unemployment: "What looks likely, given the scope and scale of the tariffs, is that we will see — certainly the risks to higher inflation, higher unemployment have increased," he said.
He warned that if the tariffs remain at the current levels, they will hinder progress toward the Fed's economic goals, at least for the coming year.
Powell Responds to Trump's Pressure
During the same press conference, Jerome Powell was asked about the impact of Donald Trump's calls for rate cuts on his decision-making process.
In response, Powell firmly stated that Trump's demands do not influence the Federal Reserve's actions: "Doesn't affect our doing our job at all," he said.
"We're always going to do the same thing, which is we're going to use our tools to foster maximum employment and price stability for the benefit of the American people," he added
The chairman made it clear that the Fed will rely solely on economic data, outlook and risk assessments when making decisions.
Social Media Reactions
Some social media users sided with Donald Trump, agreeing that interest rate cuts could benefit the economy, while others supported Jerome Powell's stance, arguing that the Federal Reserve must remain independent and base its decisions on economic data, not political pressure.
One user posted on X, "Powell's right. The Fed shouldn't be influenced by political pressure. Economic stability comes first."
Meanwhile, another user responded, "Trump's attack on Powell is just another attempt to control the economy for his own benefit. Rate cuts aren't the solution."
