President Donald Trump continued a string of attacks on Federal Reserve Chairman Jerome Powell today while meeting with reporters at the NATO summit in the Netherlands, calling Powell "a very stupid person."
Trump has regularly referenced Powell in less than flattering terms. In April, Trump posted a proposed nickname for Powell: "Mr. Too Late, a major loser."
The president's issue with Powell is his handling of the Fed's key interest rate, which affects borrowing nationwide. Powell told the House Committee on Financial Services on Tuesday that the Fed is "well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance."
Trump's analysis of the Fed holding tight on interest rates is that the U.S. will need to pay more to cover its borrowing. He offered a figure to reporters in the Netherlands while heaping even more onto Powell. "So we're gonna end up paying maybe two points or three points more. Three points would be about $900 billion a year. Because of this very average mentally person."
Trump continued, "He's an average mentally person. I'd say low in terms of what he does. Low, low IQ, for what he does.
"We have a tremendous economy," Trump said and argued there's no reason to keep interest rates higher. "We don't wanna pay 900 (billion) just because he doesn't wanna lower the rate."
The president said he tried reasoning with Powell with no result. "I said if there's inflation in two years or three years, or one year from now, you raise the rate and you take care of the inflation among other things. But he's probably a very political guy, I guess. I don't know. I think he's a very stupid person actually."
Powell's term ends in June 2026, and Trump said he has begun narrowing down a list of potential replacements to three or four people whom he would be ready to pick from to nominate to the position.
The Federal Reserve interest rate setting committee has 19 members, with Powell leading and directing the work. The committee typically increases interest rates to put a damper on inflation. The committee voted unanimously last week to keep its key interest rate unchanged. But the Fed last week also released some economic forecasts, including potential future rate cuts, which some see as an indication of emerging divisions among the policymakers.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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