Trump Calls Jerome Powell a “Fool” After Fed Rejects Rate Cut – What Happens Next?

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Well, it looks like President Donald Trump isn’t about to let Jerome Powell off the hook just yet. In fact, he’s practically using the Fed chair as a punching bag, railing against him for not slashing interest rates like some sort of economic superhero.

On Thursday, Trump took his grievances straight to Truth Social (because, of course, where else would he go?) and gave Powell a rather harsh critique, calling him “a fool” who “doesn’t have a clue.” Now that’s some top-tier diplomacy right there. I mean, really, who needs the UN when you’ve got Twitter… sorry, Truth Social.

Meanwhile, in the slightly more rational corners of the financial world, the Federal Open Market Committee (FOMC) made its decision to hold the target range for the federal funds rate at 4.25-4.5%. According to them, this is the sweet spot for both maximum employment and inflation control. They even gave a little disclaimer, saying uncertainty about the economic outlook had risen, and they were trying to walk the tightrope of avoiding higher unemployment *and* inflation. A real juggling act.

“Uncertainty about the economic outlook has increased further. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.” Well, there you have it. Sounds like they’re taking the ‘let’s not mess this up’ approach. It’s a bold strategy, Cotton. Let’s see if it pays off.

The Fed, in all its wisdom, hasn’t budged on interest rates since December, when they did cut by a mere 0.25%. A bold move, to be sure. Hold your applause.

But Trump, not one to hold back, has expressed his deep frustration with Powell’s inability to match the global competition. Speaking to reporters on Thursday, Trump complained that talking to Powell was “like talking to a wall.” And you thought your Zoom meetings were bad! At least you get a “please mute yourself” occasionally.

“The Bank of England cut. China cut. Everybody’s cutting but him. I don’t know, we’ll see what happens. It’s a shame. I call him ‘Too Late.’ Too Late Powell, that’s his nickname. And it’s a shame, it’s ridiculous… he’s always too late. But in this case, it’s not going to matter that much because our country is so strong, we’re so powerful in terms of economic strength and what we’ve done.” So, let’s recap: Trump’s economic strategy involves calling people names and then assuring everyone that America’s strength is *so strong* that nothing really matters in the end. Classic Trump logic.

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2025-05-09 06:25