US President Donald Trump sharply criticized Federal Reserve Chair Jerome Powell on Thursday following the central bank’s decision to leave interest rates unchanged, accusing him of delaying necessary rate cuts and undermining the nation’s economic strength, national security and global competitiveness. The comments came shortly after the Federal Open Market Committee announced it would maintain its benchmark interest rate, a move that aligned with market expectations but drew strong political backlash from the president.
In a post published on his social media platform, Truth Social, Trump argued that there was no justification for keeping borrowing costs at their current level. He claimed the decision was inflicting unnecessary damage on the US economy at a time when inflationary pressures have eased and economic conditions no longer warrant restrictive monetary policy. According to Trump, the failure to lower rates is placing an avoidable financial burden on the country and weakening its strategic position.
Trump alleged that the Federal Reserve’s stance is costing the United States hundreds of billions of dollars annually in interest expenses. He said these costs are entirely avoidable and described them as a drain on public finances that could otherwise be directed toward economic growth or national priorities. The president also asserted that even Powell has acknowledged that inflation is no longer a significant threat, making the current rate level unjustified in his view.
The Federal Reserve announced on Wednesday that it would hold the federal funds rate within the 3.5 percent to 3.75 percent range. In its statement, the FOMC said recent data indicate that economic activity continues to expand at a solid pace, while job gains have moderated and the unemployment rate has shown signs of stabilizing. The committee added that inflation remains somewhat elevated, a factor cited in support of its decision to maintain rates at current levels.
The decision followed a series of rate cuts earlier in the year, during which the central bank reduced borrowing costs by a cumulative 75 basis points across three meetings. Those reductions marked a shift toward a more accommodative stance, but policymakers signaled caution about moving too quickly, emphasizing the need to ensure inflation continues to move toward target levels.
Trump also tied his criticism of interest rate policy to his broader trade strategy, arguing that tariffs have generated substantial revenue inflows and strengthened the US economy. He said these factors should allow the country to borrow at lower rates than any other nation. According to Trump, several countries benefiting from low interest rates are able to do so largely because of the strength and stability of the US economy.
The president further claimed that a tougher trade stance could force those countries to rely less on US-driven economic advantages and return to what he described as more traditional ways of generating growth. He concluded his remarks by renewing his call for the Federal Reserve to take aggressive action, reiterating his view that significantly lower interest rates are essential to protecting American economic interests and maintaining global competitiveness.
