WASHINGTON – Donald Trump, the 45th President of the United States, has once again launched a scathing critique of Federal Reserve Chair Jerome Powell after the US central bank decided to keep its benchmark interest rate steady between 4.25% and 4.5%.

The decision, made at the latest Fed meeting, reflected caution in the face of economic uncertainties, including persistent inflation and an unstable labour market.

Reacting to the move, Trump labelled Powell "fool" and "have no clue" in a post on the Truth Social platform on Thursday (local time).

“’Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much!” Trump wrote.

He claimed that energy and staple prices had already declined, inflation was nearly nonexistent, and tariff revenues were pouring into the US.

However, the Fed insisted its decision was uninfluenced by political pressure. In a press conference, Powell said monetary policy continues to be guided by economic data, projections, and the balance of risks—not political opinions. “We only consider the economic data and risk balance. That’s it,” he said.

Tensions between Trump and Powell are not new. Trump has long pushed for rate cuts, arguing they would act as “jet fuel” for financial markets.

He compared the Fed’s stance to central banks like the Bank of England and the European Central Bank, which have lowered interest rates. “Every country is cutting rates except him (Powell),” Trump said to the media, as quoted by CNBC on Thursday (8/5).

The Republican president accused Powell of being slow to act, dubbing him “Too Late Powell.”

Trump also suggested Powell was reluctant to cut rates due to personal dislike, despite Trump himself having appointed Powell as Fed Chair during his presidency.

Although speculation has swirled about Powell’s potential dismissal, Trump clarified in a recent NBC interview that he would not fire him.

Instead, he plans to wait until Powell’s term ends in May 2026 to replace him. Nonetheless, criticism continued, with Trump referring to Powell as a “complete stiff” in the same interview.

The Fed opted to hold interest rates steady while assessing broader economic conditions, citing elevated risks of inflation and unemployment. This decision maintains the status quo following three rate cuts in the latter half of last year. (EF/ZH)