President Trump on Wednesday said the Federal Reserve had “failed to stop the problem they created with inflation” and had done a “terrible job on bank regulation” in a post on Truth Social.
His rebuke came hours after the Fed held interest rates steady and gave little insight into when further reductions in borrowing costs may take place.
Trump accused the central bankers and Powell of allowing inflation to skyrocket to a four-decade high in the aftermath of the COVID-19 pandemic.
“Because Jay Powell and the Fed failed to stop the problem they created with Inflation, I will do it by unleashing American Energy production, slashing Regulation, rebalancing International Trade, and reigniting American Manufacturing, but I will do much more than stopping Inflation, I will make our Country financially, and otherwise, powerful again!” Trump wrote on Truth Social.
“If the Fed had spent less time on DEI, gender ideology, ‘green’ energy, and fake climate change, Inflation would never have been a problem. Instead, we suffered from the worst Inflation in the History of our Country!”
Powell — speaking at a press conference following the unanimous decision to keep the overnight interest rate in the current 4.25%-4.50% range — said, “we do not need to be in a hurry to adjust our policy stance” and monetary policy is “well positioned” for the challenges at hand.
Powell declined to comment on Trump’s demand last week for an immediate cut, saying the Fed will be “really keeping our heads down and doing our work and that’s how we best serve the public.”
When asked whether the president told Powell his demand directly, he replied: “I’ve had no contact.”
Powell noted there are risks to cutting rates too aggressively, saying “we know that reducing policy restraint too fast or too much could hinder progress on inflation.”
With Post wires
