• Trump criticizes Powell for keeping interest rates unchanged, claiming economic harm.
• The Fed maintained a rate between 4.25% and 4.50% for the fourth consecutive meeting.
• Trump suggests that cutting rates could save the US up to $1 trillion annually.
• Former President labels Powell as "stupid" and a "dummy" and hints at potential job changes.
• Powell cites uncertainty from tariffs and inflation as reasons for the Fed's cautious approach.

President Donald Trump has once again criticized Federal Reserve Chair Jerome Powell following the Fed's decision to keep interest rates unchanged. In a post on Truth Social, Trump described Powell as a "real dummy" who is "costing America billions," expressing frustration over the Fed's inaction while European countries have cut rates multiple times. Trump argued that with low inflation, the US should have already reduced rates by 2.5 points, which he claims would save the country substantial amounts on short-term debt, according to Indiatimes and Bangkok Post.

The Federal Reserve maintained its target interest rate at a range between 4.25% and 4.50% during its latest meeting, prompting Trump's harsh remarks towards Powell, whom he labeled as "stupid" and suggested may not act due to personal biases against him. He questioned why the Fed Board does not take action against what he calls Powell's "stupid" decisions, indicating that he "may consider firing him" if things do not change. Powell, on the other hand, has pointed out that while inflation has decreased, it remains above the Fed's target while also noting potential impacts from Trump's tariffs on economic growth, according to HuffPost and Indiatimes.

In light of these developments, Trump has reinforced his call for interest rate cuts, claiming they could lead to approximate savings of $1 trillion annually for the economy. His approach reflects a stark contrast to the cautious stance adopted by Powell, who maintains that the Fed's current approach will yield better long-term decisions. Powell has indicated that he will take a measured stance regarding rate adjustments as he continues to assess the implications of tariff increases on inflation and economic activity. Observers note that Trump's aggressive public relations approach aimed at the Fed chair may not alter the board's independent stance concerning monetary policy, according to Anadolu Agency and TRT Global.