President Donald Trump sharply criticized Federal Reserve Chair Jerome Powell on Wednesday, accusing him of keeping interest rates too high and saddling the federal government with billions of dollars in unnecessary interest payments.
In a post on Truth Social, Trump referred to Powell as “‘Too Late’ Jerome Powell,” writing: “He is truly one of the dumbest, and most destructive, people in Government, and the Fed Board is complicit.” Trump argued that rates should be “2.5 Points lower” and said the country has “LOW inflation!”
“TOO LATE’s an American Disgrace!” Trump wrote.
The post came one day after the Federal Reserve held its benchmark interest rate steady in a range of 4.25 to 4.50 percent, where it has stood since December 2024. That capped a series of three rate cuts—a 50 basis point cut in September, followed by 25 basis point cuts in both November and December—but the central bank has since adopted a wait-and-see stance.
Although inflation has been running below the Fed’s two percent target in recent months, Fed officials have signaled they remain cautious. At last week’s meeting, the Fed raised its inflation forecasts and maintained its projection of two rate cuts in 2025, the same number forecast in March. Chair Powell said that while recent data had shown “modest further progress,” the Fed would need “greater confidence that inflation is moving sustainably toward 2 percent” before easing policy further.
In his press conference, Powell repeatedly claimed—without evidence—that tariffs were likely to accelerate inflation later this year.
“Increases in tariffs this year are likely to push up prices and weigh on economic activity,” Powell said. He added, “Everyone I know is forecasting a meaningful increase on prices from tariffs because someone has to pay for the tariffs.”
Despite Powell’s confidence that tariffs will push inflation higher, there’s little sign of that so far. Many of Trump’s new tariffs took effect in April, following his “Liberation Day” announcement. Consumer prices rose just 0.2 percent in April and 0.1 percent in May. Prices of core goods, excluding food and energy, rose by 0.1 percent in April and were flat in May.
Trump contrasted the Fed’s inaction with the European Central Bank, which lowered its benchmark deposit rate by 25 basis points earlier this month. “Europe has had 10 cuts, we have had none,” Trump claimed.
The criticism also reflects broader Republican concerns about rising federal interest payments. Trump has argued that lower rates would help reduce the cost of servicing the national debt. On Wednesday, he said he would focus on issuing short-term debt, which typically carries lower interest rates than longer-term bonds, until the Fed begins to cut.
Trump originally appointed Powell as Fed chair in 2018, but tensions between the two have long simmered. Powell’s current term runs through May 2026.
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