Trump insults Jerome Powell as Fed holds interest rates steady

In the United States, President Donald Trump publicly criticized Federal Reserve Chair Jerome Powell on June 22, 2025, prior to the Fed's decision on interest rates. Trump called Powell 'a stupid person' on social media, expressing frustration over the Fed's inaction in lowering rates to stimulate economic growth. He emphasized that, unlike Europe, which had experienced multiple rate cuts, the U.S. had not seen any cuts since December 2024. This strong rhetoric came amid heightened political pressure for the Fed to adopt a more aggressive monetary policy to counteract economic concerns. Trump's continued onslaught against Powell highlighted broader political frustrations with the Fed's decisions, as Trump believed that lower interest rates would benefit the national economy and reduce federal interest payments. He argued that the economic situation warranted a reassessment of the Fed's current rate, accusing Powell of being too cautious in his approach without sufficient justification. Trump's views echoed throughout parts of the political landscape, where notable supporters echoed his calls for lower rates during the same time frame. Critics within the administration and the general public also began to express concern about Trump's proposals. They worried that further pressure could compromise the independence of the Federal Reserve, a crucial institution designed to operate without political interference for the sake of economic stability. Trump had previously appointed Powell as the Fed Chair in 2018, yet their relationship became increasingly strained as Trump's pressures mounted. Discussions surrounding the potential firing of Powell resurfaced, accompanied by accusations of incompetence aimed at the central banker. As the Fed announced its decision to maintain interest rates between 4.25% and 4.5%, Trump's ongoing battle of words with Powell seemed to emphasize not just personal animosities but reflected broader uncertainties surrounding U.S. monetary policy during a time of economic fragility. The tension signified a defining moment regarding the relationship between the government and the central bank, inviting questions about policy direction and the future of interest rates in an economy exhibiting signs of volatility.