President Donald Trump tore into Federal Reserve Chair Jerome Powell on Wednesday after the Federal Open Market Committee (FOMC) voted for the fifth consecutive time to hold interest rates steady — a move Trump labeled economically damaging and politically tone-deaf given the booming U.S. economy.
Speaking moments before and after the decision, Trump blasted the Fed’s inaction, calling Powell “Too Late Jerome” and blaming him for keeping the U.S. stuck at 38th in the world for interest rates.
“Each point that this gentleman keeps up costs us $365 billion a year,” Trump said during a bill-signing ceremony for expanded VA mortgage assistance. “We should be the lowest interest rate — and we’re not. It’s all because of the Fed.”
Fed Freezes Rates Again
The Fed’s rate decision came just hours after the release of Q2 GDP data showing 3.0% growth, along with news that tariff revenues have surged, trade surpluses returned, and over $1.5 trillion in new foreign investment is entering the U.S. through recent Trump-negotiated deals with Japan, the EU, and others.
“We’ve got money pouring in from all over the world,” Trump said. “And we have no inflation.”
Treasury Secretary Scott Bessent recently projected over $300 billion in tariff revenue by year’s end — far surpassing expectations and eliminating the $71 billion deficit seen in June 2024 under Biden.
Fed Cites “Uncertainty” — Trump Calls It Excuses
Despite the positive economic data, Powell and the FOMC cited “elevated uncertainty” and “lingering concerns over inflation and employment” as reasons to hold rates.
Two Trump-appointed governors, Christopher Waller and Michelle Bowman, voted against the move — signaling growing internal dissent at the Fed.
“Right now, there’s no inflation. Everybody thought there would be,” Trump argued. “If inflation comes back, raise the rates then.”
Housing Affordability Takes Center Stage
Trump tied high interest rates directly to the struggles of American homebuyers, warning that millions are being priced out of the market or blocked from refinancing.
“The higher rates affect housing… People can’t get a loan. We don’t want that.”
He added that lowering rates now would supercharge homeownership and further stimulate the U.S. economy.
Trump: Powell “Probably Won’t” Act Until September
“Now, he’s got a meeting today, but I call [Powell] ‘Too Late.’ He’s always too late,” Trump said. “Even if he does it today — probably won’t. I hear they’re going to do it in September.”
Trump contrasted Powell’s inaction with central banks in Europe, which he said have cut rates 11 times recently, yet are still underperforming compared to the U.S.
“We’re doing better than anyone in the world, even with the higher rates.”
