Trump Slams Powell Over Tariff Remarks: "A Fool Who Knows Nothing... No Inflation"

Fed Holds Rates Steady for Third Time Despite Trump's Pressure
"All Prices Including Oil Are Falling... Tariffs Are Bringing in a Flood of Money"

U.S. President Donald Trump harshly criticized Jerome Powell, Chair of the Federal Reserve (Fed), calling him a "FOOL" after the Fed held its benchmark interest rate steady the previous day and Powell directly addressed tariff policies.

Reuters Yonhap News

On May 8 (local time), President Trump posted on his social media platform, Truth Social, saying, "'Too Late' Jerome Powell is a fool who knows nothing," adding, "Other than that, I like him a lot."

He claimed, "Oil and energy prices have dropped significantly, and almost all costs (groceries and 'eggs') are going down," and insisted, "There is virtually no inflation."

The previous day, Chair Powell had warned of the possibility of stagflation (rising prices amid economic stagnation) due to tariffs. Just one day later, Trump directly refuted Powell's remarks on his social media. Despite President Trump's public pressure to cut rates, the Fed held its benchmark interest rate steady for the third consecutive time at 4.25-4.5% the previous day. During a press conference immediately after, Chair Powell stated, "Given the scope and scale of tariffs, if such increases persist, there is a high likelihood of rising inflation, slower economic growth, and higher unemployment."

President Trump wrote, "Tariffs are bringing a flood of money into the United States," and added, "It is the exact opposite of being too late. Enjoy!"

President Trump has repeatedly pressured Chair Powell to cut rates, attacking him as a "loser" and "Mr. Too Late."

In response, Chair Powell stated the previous day that pressure from the White House "has no impact whatsoever on monetary policy," and emphasized, "We act in the interest of the American people. What we consider are economic indicators, outlook, and the balance of risks?nothing else."