Close Menu
News JournosNews Journos
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
Editors Picks

Texas Enacts Law Restricting Voting to U.S. Citizens

May 26, 2025

Venezuelan Immigrants File Lawsuit Against Trump Over Alien Enemies Act Invocation

March 15, 2025

Judge Halts Trump Administration’s Passport Policy Discriminating Against Transgender Individuals

June 18, 2025

Trump Administration Initiates Aggressive Campaign Against Border Cartels

May 23, 2025

Musk Steps Down from White House Role as DOGE Leadership Changes

April 30, 2025
Facebook X (Twitter) Instagram
Latest Headlines:
  • Israel Commemorates Two Years Since Hamas Attack Amid Ongoing Gaza War Reflections
  • Stellantis Faces Major Data Breach Affecting Third-Party Information
  • FBI Arrests Dozens of Gang Leaders in Major Mexican Mafia Operation in Los Angeles
  • UK Police Disrupt Gang Allegedly Smuggling 40,000 Stolen Phones to China
  • Tesla Cuts Model Y Standard Price Below $40,000
  • Turkey to Supply Rare Earth Elements to the U.S. Amid Court of Accounts Findings
  • U.S.-Mexico Border Illegal Crossings Reach Lowest Level Since 1970
  • Nexstar Acquires Tegna for $6.2 Billion
  • Bob Ross Paintings Auctioned to Support Public TV Stations Following Funding Cuts
  • Excitement and Concerns Surround OpenAI’s Sora 2 and New AI Video Tools
  • Netanyahu Commemorates Two Years Since October 7 Attack, Declares Resilience Against Adversaries
  • Helicopter Crash on Sacramento Freeway Leaves Three Critically Injured
  • Global M&A Activity Surges Amid Megadeals and Rate-Cut Expectations
  • Tech Companies Report Earnings Amid Market Fluctuations
  • Gold Prices Surge, Prompting Warnings from Jewelry Industry
  • Israel Government Labels Zohran Mamdani as Hamas Spokesperson
  • CoolKicks Founder Arrested for Receiving Stolen Nike Goods Worth $500K
  • Hurricane Priscilla Strengthens Over Pacific, Forecast Path Revealed
  • Effective Methods for Detecting and Removing Malware from Infected Mac Computers
  • Portland Faces Escalating Tensions Amid Claims of ‘Domestic Occupation’
Facebook X (Twitter) Instagram
News JournosNews Journos
Subscribe
Wednesday, October 8
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
News JournosNews Journos
You are here: News Journos » Finance » Trump Criticizes Powell, Predicts No Rate Cuts Ahead
Trump Criticizes Powell, Predicts No Rate Cuts Ahead

Trump Criticizes Powell, Predicts No Rate Cuts Ahead

News EditorBy News EditorJune 18, 2025 Finance 6 Mins Read

As the Federal Reserve approaches its latest decision regarding interest rates, President Donald Trump has expressed vehement criticism of Chair Jerome Powell. During an impromptu press event outside the White House, Trump labeled Powell as “stupid,” asserting that the central bank should lower the key borrowing rate by at least two percentage points. This latest outburst underscores ongoing tensions between the White House and the Federal Reserve, particularly concerning monetary policy and inflation predictions.

Article Subheadings
1) Trump’s Ongoing Critique of the Fed Chair
2) The Federal Reserve’s Current Position on Rates
3) Economic Concerns Behind the Criticism
4) Political Dynamics and Future Appointments
5) Summary of Key Insights

Trump’s Ongoing Critique of the Fed Chair

President Donald Trump has not shied away from expressing his discontent with the Federal Reserve, particularly targeting Chair Jerome Powell. His latest remarks come as the Fed prepares to announce its interest rate decision, a subject Trump has criticized on multiple occasions. Referring to Powell as “stupid,” Trump suggested that the Fed’s decision-making process is inadequate and politically influenced. He asserted, “So we have a stupid person. Frankly, you probably won’t cut today,” reflecting his frustration with the Fed’s lack of action on lowering interest rates.

Historically, Trump has voiced his belief that the Fed’s borrowing rate should be significantly lower. He contrasted the U.S. position with that of Europe, saying, “Europe had 10 cuts, and we had none.” This explicit comparison serves to highlight Trump’s perspective that the U.S. economy is being adversely affected by the Fed’s policies. Economists have pointed out that Trump’s allegations may be more about his desire for lower rates to stimulate economic growth than any substantive critique of Powell’s qualifications.

The Federal Reserve’s Current Position on Rates

As the date for the Federal Open Market Committee’s (FOMC) announcement approaches, market expectations indicate no imminent reduction in the interest rate at this meeting. The current target range for the Fed’s overnight borrowing rate sits between 4.25% and 4.50%. In recent statements, Powell and fellow committee members have signaled caution regarding potential adjustments to the rates. They cite the uncertainty surrounding various economic indicators and their slow pace of change as reasons for maintaining the status quo.

The Fed has the dual responsibility of promoting maximum employment and stabilizing prices, tasking its officials with carefully analyzing various economic factors before making decisions. Given these mandates, the committee appears hesitant to make rash moves, especially when inflation indicators have shown little significant change since the implementation of tariffs in April.

Economic Concerns Behind the Criticism

Amid Trump’s public disagreements with Powell, underlying economic issues remain at the forefront of discussions. Trump has attributed the loss of financial potential to high-interest rates, stating, “Higher interest rates are costing the U.S. hundreds of billions in financing costs that could be saved if the Fed would ease.” His arguments revolve around the idea that lower rates could lead to improved economic outcomes.

Despite the concerns Trump raised about inflation, policymakers emphasize the importance of careful economic analysis. The long-term consequences of trade tariffs, potential shifts in consumer behavior, and changing global market dynamics all complicate the Fed’s decision-making process. By weighing these factors, Powell and his colleagues hope to formulate a comprehensive monetary policy that fosters stable growth without risking inflation.

Political Dynamics and Future Appointments

The tug-of-war between Trump and Powell raises broader questions about the independence of the Federal Reserve. With Powell’s term set to expire in May 2026, speculation has intensively swirled around potential successors. Trump, in his address, hinted at the possibility of appointing himself as Fed chair, claiming, “I’d do a much better job than these people.” This remark underscores the political pressures surrounding the central bank and suggests a desire for more direct control over monetary policy.

The current environment reflects not just Trump’s frustrations but also the challenging landscape the Fed has to navigate. Given the ongoing political pressure from various administration officials, including Vice President JD Vance, the independence of monetary policy comes into question. The Fed has vowed to resist these political influences, upholding its commitment to evidence-based policymaking in the face of external pressure.

Summary of Key Insights

In summary, the relationship between the Federal Reserve and the Trump administration is becoming increasingly strained as the Fed remains steadfast in its cautious approach to interest rate adjustments. Trump’s criticisms highlight broader economic anxieties that the current administration grapples with, particularly concerning monetary policy and its implications for growth. As both parties continue to navigate this contentious landscape, the impact on economic policy will be crucial for shaping the U.S. economy’s future.

No. Key Points
1 President Trump criticized Fed Chair Powell, calling him “stupid” and questioning the Fed’s decision-making process.
2 The Federal Reserve has maintained its interest rate target between 4.25% and 4.50%, despite pressure for cuts.
3 Trump argues that lower interest rates could save the U.S. billions in financing costs.
4 The political environment poses challenges to Federal Reserve independence amid calls for potential leadership changes.
5 The ongoing tensions have significant implications for economic policy and future growth in the U.S.

Summary

The ongoing tensions between President Trump and the Federal Reserve, epitomized by recent criticisms of Chair Jerome Powell, highlight a crucial moment for U.S. monetary policy. With the economic landscape remaining uncertain, the Fed’s cautious approach may influence future appointment decisions and the trajectory of economic growth. As these dynamics unfold, the implications for the broader economy will remain significant, warranting careful observation from all stakeholders involved.

Frequently Asked Questions

Question: Why is President Trump critical of Fed Chair Jerome Powell?

President Trump is critical of Fed Chair Jerome Powell primarily because he believes that the Federal Reserve’s interest rates are too high and should be lowered to stimulate economic growth.

Question: What is the current interest rate target set by the Federal Reserve?

The current target for the Federal Reserve’s overnight borrowing rate is between 4.25% and 4.50%.

Question: How does political pressure affect the Federal Reserve’s independence?

Political pressure can complicate the decision-making process for the Federal Reserve, as it strives to maintain its independence and make evidence-based policy decisions free from external influence.

Ahead Bonds Budgeting Credit Scores criticizes Cryptocurrency cuts Debt Management Economic Policy Financial Literacy Financial Markets Financial Planning Forex Trading Investing Mutual Funds Personal Finance Portfolio Management Powell Predicts rate Real Estate Investing Retirement Planning Savings Stock Market Tax Strategies Trump Wealth Management
Share. Facebook Twitter Pinterest LinkedIn Email Reddit WhatsApp Copy Link Bluesky
News Editor
  • Website

As the News Editor at News Journos, I am dedicated to curating and delivering the latest and most impactful stories across business, finance, politics, technology, and global affairs. With a commitment to journalistic integrity, we provide breaking news, in-depth analysis, and expert insights to keep our readers informed in an ever-changing world. News Journos is your go-to independent news source, ensuring fast, accurate, and reliable reporting on the topics that matter most.

Keep Reading

Finance

Tech Companies Report Earnings Amid Market Fluctuations

6 Mins Read
Finance

AI’s Impact on Earnings Explored by Wells Fargo

5 Mins Read
Finance

U.S. and European Brands Target Chinese Consumers

6 Mins Read
Finance

Investing Abroad: A Case Amid Record U.S. Market Gains

6 Mins Read
Finance

Midday Stock Highlights: WYNN, RCAT, SNDK, PLTR

5 Mins Read
Finance

Berkshire Hathaway Boosts Stake in Occidental Petroleum

5 Mins Read
Journalism Under Siege
Editors Picks

Federal Funding Cuts Prompt Lawsuit Against Trump Administration

May 27, 2025

FBI Examines Republican Lawmakers’ Phone Records in Trump January 6 Investigation

October 6, 2025

Poll Indicates Record High Approval for Trump and Republicans Amid Democratic Decline

March 19, 2025

Trump Administration Appeals to Supreme Court on Foreign Aid Freeze Issue

February 26, 2025

White House Appoints Acting Administrator for DOGE

February 25, 2025

Subscribe to News

Get the latest sports news from NewsSite about world, sports and politics.

Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

News

  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Money Watch

Journos

  • Top Stories
  • Turkey Reports
  • Health
  • Tech
  • Sports
  • Entertainment

COMPANY

  • About Us
  • Get In Touch
  • Our Authors
  • Privacy Policy
  • Terms and Conditions
  • Accessibility

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

© 2025 The News Journos. Designed by The News Journos.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.
Go to mobile version