Trump calls Fed chief Jerome Powell 'stupid,' demands interest rate cut to 1%

UPDATED: Jun 28, 2025 06:35 IST

US President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell on Friday, saying he would "love" for Powell to resign. Speaking to reporters, Trump described Powell as having done a lousy job and went as far as to call him stupid.

"I'd love him to resign if he wanted to, He's done a lousy job", Trump said. "I think we should be paying 1per cent right now, and we're paying more because we have a guy who suffers from, I think, Trump Derangement Syndrome," Trump added.

Trump reiterated his long-standing call for significantly lower interest rates, stating that the Federal Reserve should bring the rate down to 1 per cent. He has repeatedly argued that lower borrowing costs would boost economic growth and strengthen the U.S. economy.

The Federal Reserve recently agreed to keep interest rates at 4.25 per cent to 4.50 per cent, a rate established to stabilise inflation while balancing economic growth.

Trump's battles with the Federal Reserve trace back to his presidency. Whereas Fed chairs have long had autonomy from presidential pressure, Trump has regularly pushed those limits. Even though the president lacks the legal right to fire a Fed chair without cause, Trump has publicly questioned that tradition in his term.

Jerome Powell, who Trump appointed in 2018, is likely to hold the position of Fed chair until May 2026. But with the next presidential election and the possibility of Trump returning to power, he has signalled his intention to nominate another person who would prefer aggressive rate cuts.

Trump confirmed on Friday that if he were given the chance, he would appoint a successor more in tune with his economic agenda.

This latest exchange of criticism comes as part of long-standing political tensions around the Federal Reserve's policy direction leading up to the 2025 elections.

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