Trump Blasts Fed Chair Powell as “Numbskull” Over Interest Rate Policy
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President Donald Trump sharply criticized Federal Reserve Chair Jerome Powell on Thursday, calling him a “numbskull” and accusing him of costing the U.S. economy hundreds of billions of dollars by refusing to cut interest rates.
Speaking at the White House, Trump argued that a 2-percentage-point reduction in interest rates could save the country $600 billion annually. “But we can’t get this guy to do it,” Trump said. “We’re going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] ‘I don’t see enough reason to cut the rates now.’”
The president said he supported rate hikes if inflation were rising, but emphasized that inflation is currently low. “It’s down,” he said, “and I may have to force something.”
Trump’s remarks came just hours after the Labor Department released data showing that producer prices in May rose less than many economists had expected, easing concerns about a sudden inflation spike due to tariffs. The new data has fueled calls from Trump and his allies to increase pressure on the Fed.
This latest criticism marks Trump’s third public attack on Powell in two days. Commerce Secretary Howard Lutnick joined the chorus Wednesday night, saying on Fox News, “It’s unbelievable how much we would save if [Powell] did his job and he cut interest rates.” He added that the economy is ready for such a move and that inflation is low.
Vice President JD Vance also weighed in on Wednesday, calling the Fed’s reluctance to lower rates “monetary malpractice” in a social media post.
Despite Trump’s aggressive rhetoric, financial markets appeared largely unaffected. Traders see little chance of a rate cut at the Fed’s meeting next week and only a modest chance at its July meeting. However, the probability of a September cut rose slightly on Thursday, with CME Group data showing a 76% chance, up from 69% the day before.
Trump has previously threatened to fire Powell — notably during a volatile stretch in April — but stepped back after market turbulence. On Thursday, he reiterated that he would not remove Powell from office, though he added, “I don’t know why it would be so bad.”
Under U.S. law, the president does not have the authority to fire the Fed chair at will, and the Supreme Court recently signaled that Fed governors may have stronger job protections than leaders of other federal agencies.
As Trump continues to ramp up criticism, Powell and the Federal Reserve remain focused on economic indicators and inflation targets — and so far appear unmoved by mounting political pressure.