Powell’s Tough Talk on Trump Tariffs and Interest Rates
Federal Reserve Chairman Jerome Powell, in a recent statement, aimed a pointed remark at President Trump, suggesting that the Fed would have likely opted for lower interest rates were it not for Trump’s imposition of tariffs.
Interestingly, President Trump has attributed the current economic woes—including high inflation and elevated unemployment—to the policies of President Biden, seemingly forgetting that economic challenges are often inherited rather than created anew. Powell, meanwhile, has resisted the urge to cut interest rates since Trump took office, despite calls for such action.
While the Fed has the capacity to invigorate both the economy and the real estate market through interest rate reductions, Powell’s stance has remained unchanged since Trump’s inauguration. On Monday, White House Press Secretary Karoline Leavitt conveyed a message from Trump to Powell, stating, “Jerome, you are, as usual, too late. You have cost the USA a fortune and continue to do so… You should lower the rate by a lot! Hundreds of billions of dollars are being lost. No inflation.”
WATCH:
.@PressSec @karolineleavitt reads a message from @POTUS to Jerome Powell: “Jerome, you are, as usual, too late. You have cost the USA a fortune and continue to do so…You should lower the rate by a lot! Hundreds of billions of dollars are being lost. No inflation.” pic.twitter.com/xrhW8uWn1P
— Real America’s Voice (RAV) (@RealAmVoice) June 30, 2025
During his address on Tuesday, Powell explained that interest rates have remained stable largely due to President Trump’s tariffs. As a reminder, Powell had previously cut interest rates by 50 basis points in September when inflation was significantly higher, leading some to question whether his current inaction is politically motivated.
“We went on hold when we saw the size of the tariffs. … All inflation forecasts for the U.S. went up materially as a consequence of the tariffs,” Powell stated during an event on Tuesday.
At event today, Federal Reserve chair Jerome Powell said the Fed likely would’ve lowered interest rates (as Trump has sought) if not for the Trump tariffs
Powell: “We went on hold when we saw the size of the tariffs. … All inflation forecasts for the U.S. went up materially as…
— Scott MacFarlane (@MacFarlaneNews) July 1, 2025
In a subsequent outburst, President Trump labeled Jerome Powell a ‘moron.’
WATCH:
Trump: We have a moron at the head of the fed. He’s a moron pic.twitter.com/EwnWhoXsnL
— Acyn (@Acyn) July 1, 2025
Later that evening, Treasury Secretary Scott Bessent took to the airwaves to criticize Powell, asserting, “We got a 50 basis point cut last September, and inflation was higher! And core inflation was much higher. I guess this tariff derangement syndrome happens even over at the Fed.”
WATCH:
BREAKING: Treasury Secretary Scott Bessent GOES OFF on Fed Chair Jerome Powell and the board, says they have “Tariff Derangement Syndrome” who refuse to cut interest rates
“We got a 50 basis point cut last September [2024], and inflation was HIGHER! […] I guess this tariff… pic.twitter.com/jfcuKCTUzv
— Eric Daugherty (@EricLDaugh) July 1, 2025
