Trump slaps 30% tariffs on EU, Mexico
Investing.com-- U.S. President Donald Trump once again lashed out against Federal Reserve Chair Jerome Powell on Wednesday, just hours after the central bank left interest rates unchanged and remained non-committal to future easing.
Trump said “Powell is the WORST. A real dummy, who’s costing America $Billions!,” in a social media post on Wednesday evening.
Trump’s post was on an article about Freddie Mac (OTC:FMCC) and Fannie Mae (OTC:FNMA) Chair Bill Pulte calling for Powell to step down if he doesn’t cut interest rates– a stance that echoes the president’s.
Trump has repeatedly called on Powell to cut rates, having ramped up his criticism of the Fed Chair before the Fed’s rate decision on Wednesday. The president has claimed that Powell’s unwillingness to cut rates was likely to damage the economy.
Powell on Wednesday largely reiterated the central bank’s cautious stance on future rate cuts, citing expectations of increased inflation from Trump’s trade tariffs. He maintained the Fed’s projections of two more rate cuts in 2025, but trimmed the outlook for rate cuts in 2026.
The Fed left its benchmark short-term rate unchanged at 4.25% to 4.5% on Wednesday, after cutting the rate by a cumulative 1% in 2024. The central bank has largely maintained its cautious stance on further easing this year.
Powell’s comments largely disappointed investors positioning for a dovish tilt from the Fed, especially after recent economic readings underscored some cracks in the world’s biggest economy.
A downturn in inflation largely stalled this year, and is expected to reverse in the coming months if Trump proceeds with his steep trade tariffs. U.S. consumer sentiment and spending was also seen deteriorating, while the labor market cooled from highs seen over the past two years.
Trump has threatened to fire Powell over his reluctance to cut rates, although it appears unclear if the president has the authority to do so. Powell on the other hand has maintained that he will serve the remainder of his term, which expires in May 2026.