Trump slams Powell as ‘total loser’ over unchanged Fed rates

President Donald Trump unleashed a fiery critique of Federal Reserve chair Jerome Powell, branding him a “total loser” after the Fed opted to keep interest rates static yet again.

Following the Federal Reserve’s decision on Wednesday to maintain its benchmark interest rate for the fifth straight meeting, Trump took to Truth Social on Thursday to vent his frustration over Powell’s leadership and the central bank’s reluctance to lower rates amid economic uncertainties, as Fox Business reports.

Let’s rewind a bit to set the stage. Trump, who appointed Powell to the Fed chair position back in 2017, has been a consistent critic of the man he once handpicked. It’s a classic case of buyer’s remorse, and the tension has only grown with each Fed decision that doesn’t align with Trump’s economic playbook.

Trump’s frustration boils over

Before the Fed’s announcement, Trump was quick to celebrate the economy’s second-quarter growth of 3%, calling it a performance that was way beyond expectations. But that optimism soured fast when the Fed stood pat on rates. Clearly, Trump expected a different outcome to match his bullish outlook.

“Jerome ‘Too Late’ Powell has done it again!!!” Trump blasted on social media. Well, if tardiness were a crime, Powell might be serving life without parole in Trump’s court of opinion. The president argues that delayed rate cuts are costing the nation dearly, and he’s not shy about saying so.

“’Too Late’ MUST NOW LOWER THE RATE. No Inflation!” Trump insisted. But here’s the rub: inflation isn’t exactly playing nice, and the Fed seems more inclined to watch paint dry than to slash rates on demand.

Fed cites inflation, tariff concerns

On Wednesday, the Federal Reserve justified its steady stance by pointing to ongoing inflation pressures, which remain stubbornly above their 2% long-term target. They also flagged uncertainties around tariffs, which are nudging consumer prices upward. The long-term impact of these trade policies is still anyone’s guess, but the Fed isn’t rolling the dice just yet.

Powell noted, “Higher tariffs have begun to show through more clearly in prices of some goods.” Fair enough, but that cautious tone isn’t winning any fans in the White House, where action, not observation, is the name of the game. Turns out, patience isn’t always a virtue when you’re on the receiving end of a tariff-fueled price hike.

Adding fuel to the fire, Thursday’s Commerce Department data revealed that the personal consumption expenditures index for June climbed to 2.6% year-over-year, up from 2.3% the previous month. Core PCE, which strips out the volatile stuff like food and energy, ticked up to 2.8%. These numbers are drifting further from the Fed’s target, making a compelling case for their wait-and-see approach.

Rate cut hopes dim for September meeting

With the Fed not scheduled to reconvene until mid-September, any rate cut Trump is pushing for remains on ice for now. Market expectations aren’t exactly brimming with hope either. The CME FedWatch tool showed the odds of a modest 25-basis-point cut in September dropping to 39.2% on Thursday, down sharply from 58.4% just a week prior.

Conversely, the likelihood of rates staying in the current 4.25% to 4.5% range jumped to 60.8%, a significant shift from 39.2% a week ago. It’s almost as if the market is telling Trump, “Nice try, but not this time.” Numbers don’t lie, even if they don’t always align with political wish lists.

The Fed also pointed out that while inflation is a concern, the labor market is holding strong at near full employment. That’s a silver lining, sure, but it also gives the central bank wiggle room to delay cuts if the economy shows signs of faltering. It’s a balancing act, and Powell seems content to keep both feet firmly on the tightrope.

Trump’s economic vision persists

Trump’s frustration isn’t just about numbers; it’s about people. He’s argued that lower rates would let folks buy homes or refinance at better terms, a tangible benefit for everyday Americans. But with inflation data trending the wrong way, the Fed’s hands appear tied, at least for now.

Meanwhile, the economic impact of tariffs continues to muddy the waters, pushing consumer prices higher without a clear picture of long-term consequences. It’s a bit like building a house in a storm — you know it’s going to cost more, but you’re not sure if it’ll even stand. The Fed’s caution might be prudent, even if it’s not popular.

So, where does this leave us? Trump’s clash with Powell is a stark reminder that economic policy isn’t just about spreadsheets; it’s about competing visions for America’s future. While the president pushes for immediate relief, the Fed plays the long game, and neither side seems ready to blink just yet.