Trump Slams Powell After Fed Holds Rates—Hints at Replacement

President Donald Trump launched a blistering attack on Federal Reserve Chair Jerome Powell after the Fed once again held interest rates steady—its fourth straight pause.

In a series of late-night and early morning Truth Social posts, Trump labeled Powell a “real dummy” and “destructive,” accusing him of costing the U.S. “hundreds of billions of dollars” by refusing to lower rates. Trump argued that rates should be 2.5 percentage points lower, which would “save billions on Biden’s short-term debt.”

Trump’s criticism wasn’t just economic—it was personal. Hours before the Fed’s announcement, he called Powell “a stupid person” and “a political guy who’s not a smart person”, going so far as to joke he could do a better job himself as Fed Chair.

Rate Hold Sparks Political Clash
The Fed’s decision to keep its benchmark rate in the 4.25%–4.5% range came as no surprise, but Powell’s comments about remaining in a wait-and-see mode frustrated the White House, which is pushing for faster cuts ahead of the election. Powell emphasized that the Fed is “well positioned to wait to learn more” before adjusting policy.

Trump, however, is growing impatient—and made clear he plans to announce Powell’s successor “very soon”, ahead of Powell’s term ending in May 2026.

Bottom line:
The standoff between Trump and Powell is heating up as rate policy becomes a political flashpoint. While the Fed stays focused on inflation data, Trump is turning up the pressure—and laying the groundwork to reshape the central bank’s leadership in the months ahead.