President Donald Trump trashed Federal Reserve Chairman Jerome Powell as 'not a smart person' on Wednesday morning ahead of the central bank’s meeting where the panel is expected to keep interest rates the same.
Trump spoke on the South Lawn of the White House as he announced the erection of new flag poles at the White House ahead of a potential war with Iran. During that time, he complained that the economy would be better.
“We‘re doing well. well as a country, if the Fed would ever lower rates, you know, we‘d buy debt for a lot less,” he told reporters. “Do you ever have a guy that‘s not a smart person and you‘re dealing with him and you have to deal? He‘s not a smart guy.”
Trump complained that Powell, whom Trump nominated during his first presidency in 2018 and whom Joe Biden renominated, is worried about inflation.
In the past Powell has warned that Trump’s tariffs that he announced on “Liberation Day” on April 2 of this year could contribute to inflation and slow economic growth. Last month, Powell also kept interest rates the same, much to the chagrin of the president.
But Trump dismissed the concerns.
“if there‘s inflation in six months or nine months, you lower the rates or you raise the rates. you can do whatever you want,” he said. “So let‘s say there‘s rampant inflation, which there‘s None. You know what there is? There’s success.”
Trump has also pushed back on the idea that tariffs have contributed to inflation, despite the fact that Trump put in place a pause on many of his harshest tariffs.
“So we have a stupid person frankly at the Fed, he probably won‘t cut today,” he said. Trump also accused Powell of playing politics with interest rates, despite the fact that the Federal Reserve is supposed to remain apolitical.
“Europe had ten cuts and we had none, and I guess he‘s a political guy I don‘t know,” he said. “He‘s a political guy who‘s not a smart person, but he‘s costing the country a fortune.”
The Federal Reserve has a mandate to keep unemployment low and control the level of inflation. After initially saying that inflation “will wane” at the first part of Biden’s presidency, Powell later raised interest rates 11 times during the peak of inflation.
Trump also reprised his frequent nickname for the chairman, calling him “too late Powell.”
“I call him Too Late, Powell, because he‘s always too late,” Trump said. “I mean, if you look at him, every time I did this, I was right 100 percent, he was wrong.”
The Federal Reserve will make its announcement as it continues to weigh the effects of the tariffs, the level of unemployment and inflation. Last week, the Bureau of Labor Statistics announced that the Consumer Price Index rose 0.1 percent in the past month and by 2.4 percent in the past 12 months.
In addition, on Wednesday, the U.S. Census Bureau announced that construction for privately-owned housing units authorized by building permits for the month of May was at 1,393,000, one of the lowest numbers since the 2020 Covid-19 pandemic hit.
Powell’s term--which has been colored by his response the pandemic and the ensuing inflation that came after shocks to supply chains--will expire next year. Trump joked he might appoint himself.
“Am I allowed to appoint myself?” he said. “Am I allowed to appoint myself at the Fed? I'd do a much better job than these people.”
