Trump says ‘stupid’ Powell ‘probably won’t cut’ rates Wednesday

As the Federal Reserve gears up for its latest decision on interest rates, President Donald Trump has once again taken aim at Chair Jerome Powell, labeling him as “stupid” and expressing doubt that the central bank will make a cut.

In a series of scathing remarks just outside the White House, Trump criticized Powell for not lowering the Fed’s key borrowing rate by at least 2 percentage points. He compared the lack of rate cuts in the U.S. to the 10 cuts made in Europe, suggesting that Powell’s decisions are costing the country a significant amount of money.

Despite Trump’s criticism, market pricing indicates that there is no expectation of a rate cut at the upcoming meeting, with the next move likely to come in September. The Fed currently maintains its overnight borrowing rate in a range between 4.25% and 4.50%.

One of the key factors influencing the Fed’s decision-making process is the impact of Trump’s tariffs on the economy. While inflation indicators have remained relatively stable since the tariffs were implemented, there are still uncertainties surrounding their long-term effects.

Trump argued that higher interest rates are resulting in unnecessary financing costs for the U.S., and he urged the Fed to ease monetary policy to save money. He expressed confidence that inflation remains under control and criticized Powell for refusing to lower rates.

The president even suggested that he could do a better job than Powell as Fed chair, hinting at the possibility of appointing himself to the position. Powell’s term is set to expire in May 2026, and Trump has indicated that he plans to name a successor in the near future.

Despite the ongoing tension between Trump and Powell, the Fed has maintained its commitment to making independent decisions based on economic data rather than political pressure. The outcome of the upcoming Fed meeting will shed light on the central bank’s stance on interest rates and its outlook for the economy.