Trump Attacks Powell, Demands Fed Rate Cuts
President Donald Trump attacked Federal Reserve Chair Jerome Powell on Thursday via Truth Social, demanding the central bank cut interest rates immediately and claiming Powell is "hurting our country and its national security." Trump called Powell a "moron" responsible for "costing America Hundreds of Billions of Dollars a year" in interest expenses, despite the Federal Open Market Committee voting 10-2 to hold rates steady after three consecutive months of reductions.
Trump falsely linked the Fed's interest rate decision to his tariff policies, claiming that revenue from tariffs should result in the lowest interest rates globally. He did not explain the relationship between import taxes and the Fed's overnight interbank lending rate, nor did he acknowledge that tariffs are paid by American consumers rather than foreign countries.
Only two Trump appointees to the Federal Reserve's board—Christopher Waller and Stephen Miran—supported further rate cuts aligned with Trump's demand. The broader committee cited solid economic expansion and elevated inflation as reasons to maintain current rates, noting that future adjustments would depend on economic data and outlook rather than presidential pressure.
Trump's attack followed a Department of Justice criminal investigation into Powell and the Federal Reserve, which Powell publicly characterized as retaliation for the bank's refusal to artificially lower rates. Powell stated the investigation represents "a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President."
The DOJ probe drew bipartisan congressional criticism, including from Republican Senator Thom Tillis of North Carolina, who vowed to block any future Trump nominees to the Fed board until the investigation concludes. Trump has previously threatened to sue Powell over Federal Reserve building renovations, continuing his pattern of weaponizing federal authority against officials who resist his economic demands.