Trump Slams Fed Chair Powell, Calls Him a 'FOOL' For Not Lowering Interest Rates

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President Donald Trump called Federal Reserve Chair Jerome Powell a "FOOL" for not lowering interest rates on Wednesday, claiming that there is "NO INFLATION" in the United States.

In a post on his social media platform, Truth Social, Trump said Powell "doesn't have clue." ". Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and "eggs") down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF "TOO LATE!" ENJOY!" Trump added.

Concerns arose earlier this year as Trump suggested he would seek ways to fire Powell, a move that would interfere with the Federal Reserve's independence. However, he recently said he won't pursue such a course of action, easing markets' concerns on the matter. Powell's term as chair ends in 2026.

Trump has nonetheless continued attacking Powell, recently telling NBC News that interest rates will come down at some point. "He'd rather not because he's not a fan of mine. You know, he just doesn't like me because I think he's a total stiff," Trump said. On Thursday he rejected meeting with Powell, saying it would be like "talking to a wall."

Powell explained why the Fed declined to lower rates on Wednesday, saying that the U.S. economy is still in relatively good shape. He added that policymakers want to refrain from making decisions until Trump's economic policies become clearer and the impact of tariffs are seen.

The Fed is protected from political prosecution, chiefly as a result of the landmark 1935 Supreme Court case Humphrey's Executor v. United States, in which the court held that the President may not remove an appointee to an independent regulatory agency except for reasons that Congress has provided by law. However, SCOTUS is about to hear a case that could determine the fate of such protection.

Trump has already signed an executive order trying to seize more control over the central bank's responsibilities related to bank regulation. However, the order exempted the Fed's decisions on interest rates, which are voted on at every meeting by the seven members of the central bank's Board of Governors and a rotating set of five presidents from regional reserve banks.

Nevertheless, experts, including Powell, do not expect the court's decision to apply to the Fed, but that the central bank was "monitoring carefully" the situation, he said.

Originally published on Latin Times