Trump calls Jerome Powell 'real dummy', 'worst' as Fed holds rates steady

US President Donald Trump lashed out at Federal Reserve Chair Jerome Powell after the Fed opted to leave short-term rates unchanged in its June meet

US President Donald Trump has lashed out at Federal Reserve Chair Jerome Powell, calling him “the worst” and “a real dummy” who is “costing America billions of dollars”. This comes after the Fed’s latest decision to leave interest rates unchanged.

 

In a post on Truth Social on Thursday, Trump posted a link to an article titled 'Fannie, Freddie Regulator: Powell Should Cut Rates or Quit', which reported that the regulator overseeing Fannie Mae and Freddie Mac urged Powell to step down if he continues to resist cutting interest rates. The call came after the Fed opted to leave short-term rates unchanged again on Wednesday (local time). 

US Fed maintain rates, lowers GDP forecast

The US Federal Reserve on Wednesday held interest rates steady at its June 2025 meeting, maintaining the federal funds target range at 4.25 per cent to 4.50 per cent for the fourth consecutive time.

 

 

The decision reflects the central bank’s cautious stance amid lingering inflation pressures and heightened economic uncertainty. While the Fed’s updated projections still signal two rate cuts later this year, policymakers indicated a slower pace of easing in 2026 and 2027.

 

Projections also pointed to weaker growth and persistent inflation. US GDP growth for 2025 was downgraded to 1.4 per cent; in comparison, the US economy grew 2.5 per cent last year. Meanwhile, core inflation was revised up to 3.1 per cent, above the Fed's 2 per cent target. The unemployment forecast ticked higher to 4.5 per cent.

  “Uncertainty about the economic outlook has diminished but remains elevated,” the FOMC said in its statement. Powell added, “We are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments.”  

 

Costing America a fortune: Donald Trump on Jerome Powell

Speaking just hours ahead of Wednesday’s Federal Open Market Committee statement, Trump told reporters outside the White House: “So we have a stupid person. Frankly, you probably won’t cut today. Europe had 10 cuts, and we had none. And I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person, but he’s costing the country a fortune.”

 

Trump has since repeatedly attacked Powell, whom he appointed as Fed chair during his first presidential term, over rates. 

 

Powell’s current term runs through May 2026, but Trump has signalled plans to name a successor sooner.