WASHINGTON– President Donald Trump on Thursday sharply criticized Federal Reserve Chair Jerome Powell, a day after the central bank held interest rates steady, accusing him of harming the U.S. economy and national security by refusing to cut borrowing costs.
In a post on his Truth Social platform, Trump said Powell “again refused to cut interest rates, even though he has absolutely no reason to keep them so high.”
“He is hurting our Country, and its National Security,” Trump wrote.
The president argued that inflation is no longer a threat and accused the Fed chair of excessive caution. “We should have a substantially lower rate now that even this moron admits inflation is no longer a problem or threat,” he said.
Trump said current interest rates are imposing a significant financial burden on the federal government. Powell, he said, “is costing America Hundreds of Billions of Dollar a year in totally unnecessary and uncalled for INTEREST EXPENSE.”
Linking his criticism to U.S. trade policy, Trump said tariffs have strengthened the economy and increased government revenues. “Because of the vast amounts of money flowing into our Country because of Tariffs, we should be paying the LOWEST INTEREST RATE OF ANY COUNTRY IN THE WORLD,” he wrote.
He claimed other nations benefit from low borrowing costs because of U.S. policy. “Most of these countries are low interest rate paying cash machines, thought of as elegant, solid, and prime, only because the USA. allows them to be,” Trump said.
Trump said tariffs are generating billions of dollars for the United States while still allowing many countries to maintain trade surpluses. “The Tariffs being charged to them, while bringing in $BILLIONS to us, still allows most of them to have a significant trade surplus, though much smaller,” he wrote.
He also said the United States has treated its trading partners generously. “I have been very nice, kind, and gentle to countries all over the World,” Trump said, adding that tougher tariff measures could raise even more revenue. “With a mere flip of the pen, $BILLIONS more would come into the U.S.A.”
Trump renewed his call for immediate action by the Federal Reserve. “The Fed should substantially lower interest rates, NOW!” he wrote.
He argued that tariffs have restored U.S. economic strength. “Tariffs have made America strong and powerful again, far stronger and more powerful than any other Nation,” Trump said. “WE SHOULD BE PAYING LOWER INTEREST RATES THAN ANY OTHER COUNTRY IN THE WORLD!”
Trump’s remarks came a day after Powell announced that the Federal Open Market Committee decided to leave the benchmark federal funds rate unchanged in a range of 3.5 percent to 3.75 percent. Powell said inflation has eased from its 2022 peak but remains “somewhat elevated.”
Powell also said higher goods inflation has been “boosted by the effects of tariffs,” while disinflation continues in services. He emphasized that monetary policy is “not on a preset course” and that future decisions will be made on a meeting-by-meeting basis.
During the press conference, Powell defended the independence of the central bank from political pressure, describing it as standard practice in advanced democracies and warning that credibility would be difficult to restore if lost. (Source: IANS)
