Trump Demands 2.5% Rate Cut: "Powell Is Stupid, I Could Do Better"

Trump Directly Criticizes Powell Again Ahead of FOMC Meeting
Calls Powell "not a smart person" and demands a 2-2.5 percentage point rate cut
Suggests he could do a better job as Fed Chair himself

Ahead of the Federal Open Market Committee (FOMC) meeting, U.S. President Donald Trump once again criticized Federal Reserve Chair Jerome Powell on June 18 (local time), demanding a rate cut of 2 to 2.5 percentage points.

EPA Yonhap News

Speaking to reporters at the White House that day, President Trump said, "We have a stupid person, and frankly, I don't think he will cut rates today," directly criticizing, "Europe has cut rates 10 times, but we haven't done it even once."

He further attacked Chair Powell, calling him "not a smart person," "a political person," and "an embarrassment." Trump then asserted, "Maybe I should go to the Fed. Can I nominate myself as Fed Chair? I could do much better than these people."

He added, "If we lower rates by 2 to 2.5 percentage points, we could save $800 billion (about 1,100 trillion won), $700 billion (about 960 trillion won)."

President Trump also said, "If he (Powell) is worried about inflation, I understand, but I don't think there will be inflation. There hasn't been any so far, and we have almost no inflation," emphasizing his view.

He also announced that he would soon reveal his pick for the next Fed Chair. Powell's term ends in May of next year.

President Trump stated, "What I have to do is wait for him to leave office in about nine months. Fortunately, he will be ousted," and made the baseless claim, "(Former President) Biden reappointed him, but I don't know why. Maybe it's because he was a Democrat."

Meanwhile, after the FOMC meeting, Chair Powell was asked about President Trump's attacks during a press conference and dismissed the matter, saying, "From my perspective, it's not a complicated issue. What every member of the Fed wants is a sound U.S. economy with a strong labor market and price stability."

President Trump has repeatedly pressured Chair Powell to cut rates. On June 12, he also referred to Powell as "slow" and specifically called for a 1 percentage point rate cut.