Former President Donald Trump lashed out at Federal Reserve Chair Jerome Powell on Wednesday morning, calling him “not a smart person” just hours before the central bank was expected to keep interest rates unchanged.
Speaking from the South Lawn of the White House, where he was unveiling new flagpoles amid rising tensions with Iran, Trump used the moment to take aim at Powell and the Fed’s monetary policy.
“We’re doing well — well as a country — but if the Fed would ever lower rates, we’d be buying debt for a lot less,” Trump said. “Do you ever deal with someone who’s just not a smart person, but you still have to deal with them? He’s not a smart guy.”
Trump, who originally nominated Powell in 2018 and who was later renominated by President Joe Biden, criticized the Fed chair for being overly focused on inflation.
Powell has previously warned that Trump’s tariffs — announced on April 2, dubbed “Liberation Day” — could fuel inflation and hinder economic growth. Just last month, the Fed opted to keep rates steady, a move that drew Trump’s ire.
But Trump brushed off the inflation concerns.
“If there’s inflation in six months or nine months, you lower the rates or raise the rates — you do whatever you want,” Trump said. “Let’s say there’s rampant inflation — which there’s not. You know what there is? Success.”
Trump also rejected the idea that his tariffs have driven inflation, even though he paused many of the more aggressive ones.
“We’ve got a stupid person, frankly, at the Fed. He probably won’t cut today,” Trump said, doubling down on his criticism. He also accused Powell of being “political” in his decisions — despite the Fed’s legal mandate to remain independent and apolitical.