Federal Reserve Chairman Jerome Powell faced criticism from President Donald Trump following the central bank’s recent decision to maintain current interest rates. On Thursday, Trump expressed his discontent on Truth Social, calling Powell a “fool” and criticizing his actions as too slow. Despite this, Trump noted he still had personal regard for Powell.
The Federal Reserve announced on Wednesday that it would leave its key interest rate unchanged, citing ongoing monitoring of inflation and labor market conditions amid a backdrop of economic uncertainty. This decision keeps the federal funds rate within the range of 4.25% to 4.5%.
The Federal Open Market Committee highlighted increasing uncertainty regarding the economic outlook, stating that the risks of higher unemployment and inflation have risen. Powell, during a press conference, assured that the president’s criticisms do not influence the central bank’s responsibilities, emphasizing their commitment to fostering maximum employment and price stability based solely on economic data and forecasts.
Recently, Trump urged the Fed to reduce rates after the release of an optimistic April jobs report, pointing to decreased fuel and grocery prices alongside strong employment figures. The Fed’s stance of retaining its interest rates at 4.25% to 4.5% follows previous meetings in January and March, succeeding three rate cuts in the earlier meetings.
