Trump brands Fed Chair Powell as "foolish" following interest rate decision.
Trump roasts Fed Chief Powell as "Fool," but his verbal jabs seem to be water off a duck's back
In the roundabouts of Washington politics, President Donald Trump's sharp tongue is nothing new, but his recent scathing remark towards Federal Reserve Chairman Jerome Powell - calling him a "fool" - seems to have minimal impact on the Fed's stance.
Trump has been clamoring for the central bank to slash interest rates, with the current rate hovering at 4.25 to 4.5 percent.
However, Powell and the Fed are playing it cool, sticking to their guns and preferring to observe the economic landscape before making any decisions on rate reductions.
U.S. President Donald Trump has hit out at Federal Reserve Chairman Jerome Powell, likening him to a dim-witted bonehead on his Truth Social platform. Trump's broadside came in response to the Fed's recent decision to keep interest rates unchanged, a move that seemingly went against the president's pressure for lower borrowing costs.
Trump has previously targeted Powell, branding him a "loser" or "Mr. Late." Despite his criticisms, it seems that Powell has shrugged off Trump's attacks, keeping the Fed's focus on economic data and outlook.
In a Q&A session, when asked about the possibility of rate cuts this year, Powell answered that the Fed needed to "wait and see how things develop." This noncommittal response was in stark contrast to Trump's aggressive push for interest rate cuts.
Given Trump's administration's contentious trade policies, the Fed has opted for a wait-and-see approach, refusing to commit to near-term rate reductions.
Despite the noise, Jerome Powell has confirmed that he would never meet with the president to avoid any political influence on the Fed's policy-making process.
Recent statements from Powell have highlighted the potential economic risks associated with Trump's tariff policies. However, Powell made it clear that the Fed remains steadfast in its focus on economic data rather than succumbing to political pressure.
So while Trump's criticism of Powell has been virulent and relentless, it appears to have done little to alter the Fed's strategy on interest rates.
In response to President Donald Trump's criticism labeling Federal Reserve Chairman Jerome Powell a "dim-witted bonehead," Powell cited economic data and outlook as the primary focus for the Fed.
During a Q&A session, Powell specifically stated that the Fed would "wait and see how things develop" when asked about the possibility of rate cuts this year, a stance in stark contrast to Trump's aggressive push for interest rate reductions.
Contrary to speculation, Powell has vehemently refused to meet with Trump in person to avoid any political influence on the Fed's policy-making process, citing general news reports of potential risks associated with the administration's contentious trade policies.
Powell's stance on interest rates, fed by his focus on economic data rather than politics, has shown resilience in the face of Trump's relentless criticism, maintaining the Fed's business and legislative independence.
Despite Trump's verbal jabs, Fed policy continues to be dictated by economic conditions and outlook, not political pressure or rhetoric, as seen in the Fed's consistent stance on interest rates.
