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Trump Criticizes Fed Chair Powell and Calls for 2% Rate Cut
In a blunt rebuke during an appearance at the White House, former President Donald Trump strongly criticized Federal Reserve Chairman Jerome Powell, calling him "stupid" for refusing to lower interest rates. Trump is now publicly advocating for an aggressive 2 percentage point rate cut, arguing that it would save the U.S. about $600 billion annually.
"We are going to spend $600 billion a year because of a stupid person who says: 'I don't see enough reason to cut rates now,'" Trump said, expressing frustration with the Fed's current political stance.
The statements follow a weaker-than-expected inflation report, with the May producer price index showing weaker growth than anticipated—reinforcing Trump's claim that high rates are no longer justified.
The former president is not alone in his criticism. Commerce Secretary Howard Lutnick and Vice President JD Vance echoed similar concerns. Lutnick stated: "Inflation is low. He needs to do his job soon," while Vance called the Fed's inaction "monetary malpractice."
Markets remained stable immediately afterward, but expectations for a rate cut in September rose from 69% to 76%, reflecting growing pressure on the central bank.
Trump also revived his preference for nicknames, calling Powell "Too Late" in reference to his perceived poor timing in monetary decisions. Although Trump confirmed that he has no intention of removing Powell before the end of his term in 2026, he added: "I don't know why that would be so bad."
While Powell remains legally protected—especially in light of a recent Supreme Court decision—political scrutiny is intensifying. As Trump escalates his public campaign for looser monetary policy, Powell faces increasing pressure both inside and outside the Fed.
