He added that the U.S. should have a substantially lower rate while adding that Powell thinks that inflation is no longer a problem or threat.
President Donald Trump on Thursday criticized Federal Reserve Chair Jerome Powell after the Federal Open Market Committee (FOMC) decided to keep interest rates unchanged.
In a Truth Social post, President Trump said Powell kept rates unchanged even though there was no reason to keep them high, adding that this decision is hurting U.S. national security.
“He is costing America Hundreds of Billions of Dollar a year in totally unnecessary and uncalled for INTEREST EXPENSE,” the President stated.
He added that the U.S. should have a substantially lower rate, noting that Powell believes inflation is no longer a problem or threat.
Fed Keeps Rates Unchanged, Cites Solid Economic Activity
This comes after the Fed decided on Wednesday to keep the key borrowing rate unchanged, maintaining the federal funds rate in the 3.5% to 3.75% range, in line with market expectations.
“Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated,” the FOMC stated in its announcement.
This comes after the Fed cut rates by 25 bps at each of the previous three FOMC meetings, ending 2025 with a cumulative reduction of 75 bps.
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