‘Real Dummy’: Trump says Fed Chair Powell ‘costing America billions’; slams him for not cutting rates again

US president slammed Federal Reserve Chairman Jerome Powell on Wednesday after the central bank once again decided not to cut interest rates. The president in his Truth Social post, called Powell a "real dummy" who was "costing America billions."He also shared an article highlighting criticism from an investor who said Powell should resign "effective immediately" if he didn't reduce short-term interest rates. It argued the Fed was hurting the housing market by acting too slowly and that inflation had fallen enough to justify a cut.The US Federal Reserve decided to keep its benchmark interest rate unchanged for the fourth straight meeting, sticking with a range between 4.25% and 4.50%. Fed Chair Jerome Powell said the central bank was in no rush to act and would monitor inflation trends and the impact of Trump's new tariffs over the summer. “We'll make smarter and better decisions if we just wait a couple of months,” Powell said, suggesting a cautious stance given the mixed economic signals.The Fed also revised its outlook—cutting its 2025 growth forecast from 1.7% to 1.4%, and raising inflation expectations to 3% and the unemployment rate to 4.5%.

From “stupid” to “worst ever”

Trump's criticism of Powell is not new. In the past, he has publicly attacked the Fed chairman, including calling him “stupid” just before the rates were announced. Last week, Trump posted, "Fed should lower one full point… so important!" in response to Consumer Price Index (CPI) data he described as positive.Trump has suggested that cutting rates will lower the interest America pays on its debt—an argument critics say overlooks the inflationary risks of such moves.The Fed noted that Trump’s sweeping 10% tariffs on major trading partners were likely to increase inflation and slow growth. Powell admitted that the full effects were still unclear and may not be visible for several months. “Because the economy is still solid, we can take the time to actually see what's going to happen,” he said.