President Donald Trump launched a sharp criticism of Federal Reserve Chair Jerome Powell on Thursday, labeling him a “numbskull” as he intensified calls for a reduction in interest rates. Speaking from the White House, Trump argued that lowering the rates by 2 percentage points could save the U.S. an estimated $600 billion annually. “But we can’t get this guy to do it,” he exclaimed.
The president emphasized the financial burden by stating, “We’re going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] ‘I don’t see enough reason to cut the rates now.'” While he expressed willingness to accept rate increases if inflation were on the rise, he noted that current trends show rising inflation is not a concern. “But it’s down,” he remarked, indicating potential for action on his part if necessary.
Trump’s remarks followed a report from the Labor Department revealing that U.S. producer prices increased less than expected in May, alleviating some inflation anxieties tied to tariffs. This development has spurred Trump and his associates to exert more pressure on the Federal Reserve.
This attack on Powell marks the third instance in two days where administration officials have criticized the central bank’s head. Commerce Secretary Howard Lutnick voiced his frustration on Fox News, stating, “It’s unbelievable how much we would save if [Powell] did his job and he cut interest rates. The economy is ready for it. It’s easy. Inflation is low. Come on. He’s got to do his job soon.”