Trump Blasts ‘Numbskull’ Fed Chair Powell as Rate Cut Delays Roil Markets

Former President Trump doesn’t mince words—especially when it comes to Jerome Powell. The Fed Chair’s hesitation on rate cuts just earned him a fiery new nickname.

Markets on edge as political pressure collides with monetary policy

While Powell cites inflation concerns, critics argue the Fed’s slow-motion approach risks derailing economic momentum. ‘Typical central banker move—always fighting the last war,’ quips one Wall Street trader.

The standoff highlights a growing divide between Main Street’s need for liquidity and the Fed’s institutional caution. With crypto markets surging on expectations of looser policy, Powell’s delay might just fuel the very speculation he hopes to curb.

One thing’s certain: in the high-stakes game of economic chicken between Trump and the Fed, volatility’s the only guaranteed winner.

Confident Investing Starts Here:

• Easily unpack a company''s performance with TipRanks'' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks'' Smart Value Newsletter

“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,''” said Trump on Thursday in a reference to higher U.S. government interests payments on debt. Trump also said that he may have to “force something” in regard to the federal funds rate.

Trump Calls for Interest Rates to be Cut by 100 Basis Points

Yesterday, Trump called for the interest rates to be slashed by “ONE FULL POINT” on Truth Social following the release of May’s consumer price index (CPI). May’s CPI was lower than expected on a monthly basis, rising by 0.1% compared to the estimate for 0.2%. Yearly CPI ROSE by 2.4%, in line with the estimate.

Core CPI, which excludes volatile food and energy prices, came in below expectations on both a monthly and yearly basis.

With lower inflation, the Fed has more reason to cut rates. That could provide a boost to a stock market and the economy as individuals and companies are able to borrow at lower rates.

Track inflation and the federal funds rate with TipRanks’ Economic Indicators Dashboard.