(Yahoo!Finance) - President Trump resumed his attacks on Federal Reserve Chair Jerome Powell Thursday, calling the central bank boss a "fool" who "doesn't have a clue."
The comments on the social media platform Truth Social came one day after the Fed kept its interest rates unchanged and Powell reiterated that he would wait for greater clarity on how Trump's tariffs would affect the economy before deciding on a path for monetary policy going forward.
The president added during an Oval Office press conference Thursday that he doesn't plan to meet with Powell, saying, "It's like talking to a wall."
On Wednesday, Powell was asked by Yahoo Finance why he hadn't met with Trump. The Fed chair said, "I've never asked for a meeting with any president, and I never will."
Trump has repeatedly called for the Fed to lower rates and did so again in the Oval Office Thursday, saying that Powell didn't want to do so, probably because "he's not in love with me." He also resurfaced his contention that Powell has a history of moving too late on monetary policy.
"'Too Late' Jerome Powell is a FOOL, who doesn’t have a clue," Trump said in his post Thursday.
Traders have now pushed back bets on the first rate cut this year to July from June, and odds for a rate cut in July are just slightly better than 50%. Markets are currently pricing in three 25 basis point rate cuts starting in July.
It's unclear whether the Fed still anticipates making two cuts in 2025, as it predicted in March.
Asked Wednesday whether the Fed could make a policy change as soon as the next meeting in June, Powell told reporters, "We feel like it's appropriate to be patient ... we think right now the appropriate thing to do is to wait and see how things evolve. There's so much uncertainty."
Powell also told reporters he didn't think that the Fed could be preemptive with rate cuts now because the central bank expects upward pressure on inflation while the economy weakens. He said the central bank doesn't know what the right response will be yet until officials see more data.
Some Fed watchers argue there is danger in waiting too long.
"Postponing the initial rate cut raises the risk that policymakers may need to accelerate the pace of easing later in the year to avoid falling behind the curve," said EY chief economist Greg Daco.
Other central banks outside the US are easing monetary policy further. The Bank of England on Thursday cut its main interest rate by a quarter of a percentage point, citing lower inflation.
Trump in the Oval Office Thursday cited those moves outside of the US and said of Powell: "If he would lower interest rates ... it would be like jet fuel," he said, "but he doesn't want to do it."
"But in this case, it's not going to matter that much because our country is so strong," Trump added.
The president has lobbed a series of insults at Powell in recent weeks, calling him a "total stiff" and a "major loser" while trying to brand him with the nickname "Too Late."
"There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," the president posted on his social media website, Truth Social, on April 21, saying that "'Preemptive Cuts' in Interest Rates are being called for by many."
He also said that Powell's "termination can't come fast enough" before later clarifying that he had no intention of removing Powell before his term is up in May 2026.
Powell was asked Wednesday about his reaction to Trump saying that he would keep Powell in place, and he replied that he had nothing more to say. Powell has previously said he intends to serve out his term and that his removal is not permitted by law.
"I've pretty much covered that issue," he said Wednesday.
He was also asked whether Trump's calls for lower rates affect his job or the decision made on Wednesday. "Doesn't affect doing our job at all," Powell said.
Later in the Wednesday afternoon press conference, Powell was asked by Yahoo Finance why he hadn't met with Trump.
"I've never asked for a meeting with any president, and I never will," he said, adding that it is not up to the Fed chair to seek out an audience with the occupant of the Oval Office.
"It always comes the other way: 'A president wants to meet with you,' but that hasn’t happened."
By Jennifer Schonberger · Senior Reporter
