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Trump chastises ‘very dumb’ Jerome Powell ahead of Congressional testimony, warns ‘We will be paying for…’
President Trump criticized Fed Chair Jerome Powell for not cutting interest rates, arguing the US should lower them to match Europe's cuts.
President Donald Trump blasted Federal Reserve Chair Jerome Powell for no cut in the benchmark interest rate, stressing that Europe has has 10 cuts and the “great economy” US should at least have two to three points lower.
Taking to Truth Social on Tuesday, Trump wrote: “Europe has had 10 cuts, we have had ZERO. No inflation, great economy—we should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the rate.”
Trump has repeatedly called for Powell's termination and openly attacked him for failing to lower interest rates.
Higher interest rates, in the view of the president, are needlessly impeding the growth of the US economy. On the other hand, the Fed is worried about the inflation forecast due to Trump's tariffs.
Trump slams Powell as ‘very dumb’ person
In his post, Trump mentioned that Powell will be in Congress today to explain why he is not slashing the rate. He went on to call Powell “very dumb” and “hardheaded person.”
“'Too Late' Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate,” the President wrote.
“I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!”
Last week, Trump referred to Powell as “a real dummy” in a similar tirade on Truth Social on the announcement that interest rates would remain unchanged.
“Too Late—Powell is the WORST. A real dummy, who's costing America $Billion,” he wrote.
Powell is one of over a dozen central bank executives that vote on the bank's interest rate, and he is the head of the Federal Open Market Committee.
He will step down as Federal Reserve chair next year.
Here's what Jerome Powell said
After the Fed's declaration that it would not cut rates, Powell said: “What everyone on the FOMC wants is a good solid American economy with a strong labor market and price stability. That's what we want. We think our policy is well positioned to right now deliver that and to be able to respond in a timely way as the data lead us around.”
The Fed will meet again on July 29 and 30 to make a decision on whether to lower interest rates.
