Donald Trump unloaded on Federal Reserve Chairman Jerome Powell Wednesday, mocking his mental capacity and imploring him to reduce interest rates.
In a move sure to tick off the president, however, the Fed refused to budge once again.
The Federal Reserve on Wednesday kept interest rates steady amid expectations of higher inflation and lower economic growth ahead, and still pointed to two reductions later this year.
With markets expecting no chance of a central bank move this week, the Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December.
“POWELL IS NOT A SMART GUY” – PRESIDENT TRUMP
He gets into details about inflation and interest rates. It’s Powell’s fault that we’re not saving and bringing in more than we are, according to @POTUS @RealDonaldTrump pic.twitter.com/1teiWdNHqF— Real America’s Voice (RAV) (@RealAmVoice) June 18, 2025
Related: Watch: Trump Mocks Reporter for Question on Iran – Then Drops a Big Warning to Iran’s Leader
Classic Trump: President Busts Up White House Construction Workers While Talking About Hollywood
The Fed indicated that two rate cuts could be on the table for later this year, however:
Along with the rate decision, the committee indicated, through its closely watched “dot plot,” that two cuts by the end of 2025 are still on the table. However, it lopped off one cut for both 2026 and 2027, putting the expected future rate cuts at four, or a full percentage point.
The plot indicated continued uncertainty from Fed officials about the future of rates. Each dot represents one official’s expectations for rates. There was wide dispersion on the matrix, with an outlook pointing to a fed funds rate around 3.4% in 2027.
Trump seemed to know that the Fed was not going to take action, and said before the announcement that Powell was not too bright:
President Trump rips Federal Reserve Chair Jerome Powell: “We have a stupid person, frankly at the Fed…He’s a political guy who’s not a smart guy, but he’s costing the country a fortune….I would’ve never reappointed him, Biden reappointed him.” pic.twitter.com/6b46voNIyx
— Julia 🇺🇸 (@Jules31415) June 18, 2025
Trump admitted he wanted Powell gone:
“He just refuses to lower rates. I don’t even think he’s political, I think he hates me. He probably should, I call him every name in the book to try and get him to cut.”
It was the fourth straight meeting where the Fed left the benchmark short-term rate at a range of 4.25 percent to 4.5 percent. Members are reportedly concerned over Trump’s tariff policies:
The central bank also raised its 2025 inflation forecast and revised down its economic outlook amid the ever-shifting import fees, envisioning at least a step toward a worst-of-all worlds scenario known as stagflation. Since the Fed’s last projections in March, Trump has announced more wide-ranging duties, dimming officials’ views of the economy’s prospects this year….
Déjà Vu from May: Breaking: Federal Reserve Makes Decision on Interest Rate Cuts, Trump Will Not Be Happy
One thing is clear: Trump is not going to be happy with Mr. Powell. Nor is anyone who is shopping for a mortgage or owns a credit card.
Help RedState continue to tell the truth about the Trump administration’s accomplishments as we continue to usher in the Golden Era of America. Join RedState’s VIP and use promo code FIGHT to get 60% off your membership.
