The President’s criticism comes a day after the Federal chair said the time isn’t yet right for a rate cut.
President Trump on Thursday criticized Federal Reserve Chair Jerome Powell for holding interest rates steady at the Fed’s May 7 meeting, calling him a “fool” for acting “too late” in cutting the central bank’s benchmark rate.
Mr. Trump’s post on his Truth Social app is the latest in a string of criticisms he’s launched at Powell for holding rates steady this year. Meanwhile, the Bank of England on Thursday cut its main interest rate by a quarter of a percentage point to 4.25% amid concerns over the potential shock to global growth emanating from the tariff policies of the Trump administration.
The Federal Reserve’s last rate cut was made in December 2024, when the central bank lowered the rate to a range of 4.25% to 4.50%, where it still stands.
In a press conference yesterday, Powell articulated the Fed’s reasoning for holding steady, including that economic data — for now — shows that the U.S. is in relatively good shape. The Fed chair also noted that its policymakers want to hold off on making any moves until the effects of Mr.
