US President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell on Thursday, calling for an extraordinary 2.5 percentage point interest rate cut and accusing the central bank chief of causing economic harm.
In a series of posts on Truth Social, Trump lashed out at Powell, whom he appointed in 2017, calling him “one of the dumbest, and most destructive, people in Government.”
“‘Too Late’ Jerome Powell is costing our Country Hundreds of Billions of Dollars,” Trump wrote. “TOO LATE’s an American Disgrace!”
The latest tirade follows the Federal Reserve’s decision on Wednesday to keep its benchmark interest rate unchanged in the range of 4.25% to 4.5%, citing a strong economy but persistent uncertainty around inflation.
The central bank signaled two quarter-point cuts by the end of the year.
An immediate 2.5-point cut would be unprecedented in modern US monetary policy. The Fed typically moves rates in quarter-point increments, adjusting more aggressively only during severe economic shocks, such as in 2020 during the onset of the COVID-19 pandemic.
Trump also criticized the Fed’s pace compared to Europe, claiming, “Europe has had 10 cuts, we have had none.” In fact, the European Central Bank has implemented eight rate cuts in the past year.