Trump calls Powell a ‘fool’ over rate cut delays, but still likes him ‘very much’

US President Donald Trump has renewed his criticism on Federal Reserve Chair Jerome Powell, calling him “a fool” and blaming him for acting “too late” on interest rates.

“Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much!” Trump wrote in a social media post, dated May 8.

The outburst comes as the US central bank warned that Trump’s own tariff policies have created “so much uncertainty” that the Federal Reserve is unsure how to proceed with interest rates.

“Too Late” Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and “eggs”) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. — THE EXACT OPPOSITE OF “TOO LATE!” ENJOY!

From…

— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) May 8, 2025

Despite pressure from Trump to cut rates, the Fed kept rates unchanged this week. Fed Chair Powell said the tariffs — many of which were abruptly announced or delayed — have clouded the economic outlook, complicating policy decisions. “It’s really not at all clear what it is we should do. There’s so much uncertainty,” Powell said, as reported by the BBC.

He warned that if the tariff regime stays in place, it could lead to higher inflation, slower growth, and increased unemployment — leaving the Fed in a bind. “The economic fallout from the tariffs means we cannot rush into any decision,” Powell stated, underscoring that the Fed remains independent of the White House.

Also Read: Jerome Powell says Fed will not be rushed to cut rates, outlook depends on White House

Economists have also widely warned that prolonged trade frictions could hurt consumer spending and business confidence.

Trump, who has often criticised Powell for not cutting rates fast enough, had earlier said, “You’re not supposed to criticise the Fed… but I know much more than he does about interest rates.” Despite this, he has previously stated he does not plan to fire Powell.

The clash marks another chapter in the long-standing tension between the Fed and the US president over the direction of monetary policy and the economic impact of trade decisions.