Donald Trump News: US President Criticizes Fed Chair Jerome Powell, Calls Him ‘Political and Not Smart’

Donald Trump News: Former US President Donald Trump sparked outrage by calling Federal Reserve Chairman Jerome Powell a “fool” and accusing him of being politically motivated. Trump criticized Powell for failing to lower interest rates, especially in comparison to Europe, which has executed ten rate cuts. He expressed concerns over Powell’s decisions, stating that it was damaging the US economy. These remarks came just hours before the Federal Reserve’s meeting, where Powell maintained the federal interest rate at 4.25% to 4.5%, in line with previous predictions.

Fed Highlights Slower GDP Growth

Following the meeting, the Federal Reserve justified its decision by citing persistent tariff tensions and uncertainties over the Middle East issue. While noting that the US economy was exhibiting indications of activity, the Fed expressed concerns about net exports and predicted weaker GDP growth. It also expected inflation to reach 3% by the end of the year, above the 2% target. Furthermore, the Fed reduced its GDP growth forecast by 1.4% and predicted a rise in the unemployment rate, signaling a challenging economic outlook ahead.