US Federal Reserve Chair Jerome Powell waits to speak during a conference marking the 75th anniversary of the International Finance Division of the Federal Reserve Board in Washington, DC, on June 2, 2025.
Andrew Caballero-Reynolds | AFP | Getty Images
President Donald Trump ripped Federal Reserve Chair Jerome Powell as a “numbskull” on Thursday as he turned up the heat on the central bank chief to lower interest rates.
Trump claimed at the White House that lowering rates by two percentage points would save the U.S. $600 billion per year, “but we can’t get this guy to do it.”
“We’re going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] ‘I don’t see enough reason to cut the rates now,'” Trump said.
Trump added that he was OK with the Fed raising rates if inflation was going up.
“But it’s down,” he said, “and I may have to force something.”
Trump’s insult came hours after the Labor Department reported that U.S. producer prices rose less in May than some economists anticipated.
That and other recent economic readings have calmed some fears about a sudden tariff-induced inflation spike — and galvanized Trump and his allies to ramp up pressure on the Fed.
Trump’s latest attack on Powell was the third time in two days that a member of his administration has targeted the central bank leader.
Commerce Secretary Howard Lutnick said Wednesday night, “It’s unbelievable how much we would save if [Powell] did his job and he cut interest rates.”
“The economy is ready for it. It’s easy. Inflation is low,” Lutnick said on Fox News. “Come on. He’s got to do his job soon.”
Earlier Wednesday, Vice President JD Vance wrote in a social media post, “the refusal by the Fed to cut rates is monetary malpractice.”
Markets were mostly unmoved by Trump’s remarks, which continued his recent efforts to brand Powell with the nickname “Too Late.”
Traders have priced in virtually no chance that the Fed will cut rates following its meeting next week, and little chance of a move at its July gathering.
Traders did assign a stronger chance of a cut in September, with odds running at about 76% on Thursday, compared to 69% a day ago, according to CME Group data.
Investors were spooked in April when Trump appeared to be considering an attempt to fire Powell before his term expires next year. Trump backed off following a bout of market volatility, and has not threatened to fire Powell since then.
Trump in Thursday’s remarks repeated that he is “not going to fire” Powell, but added, “I don’t know why it would be so bad.”
Powell has said that the law does not permit the president to fire him, and the Supreme Court suggested in May that Fed governors have more protection against termination than other federal agency heads.
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—CNBC’s Jeff Cox contributed to this report.