Trump Renews Attack On Jerome Powell After Fed Holds Rates Steady, Says He Is 'Hurting Our Country, National Security'

(MENAFN- Live Mint) US President Donald Trump on Thursday (January 29) sharply criticised Federal Reserve Chair Jerome Powell for refusing to cut interest rates, accusing him of damaging the economy and undermining national security.

In a lengthy post on Truth Social, Trump said the Fed's policy stance was unjustified and costly, arguing that inflation was no longer a concern and that borrowing costs should be far lower.

'Too Late' Powell hurting the country

Trump once again targeted Powell personally, repeating a nickname he has frequently used.

“Jerome 'Too Late' Powell again refused to cut interest rates, even though he has absolutely no reason to keep them so high,” Trump wrote.

“He is hurting our Country, and its National Security.”

The President claimed the Fed chair himself had acknowledged that inflation was no longer a threat, making the current rate levels unnecessary.

'Hundreds of billions' in interest costs

Trump said elevated interest rates were imposing a heavy financial burden on the US government.

“He is costing America Hundreds of Billions of Dollar a year in totally unnecessary and uncalled for INTEREST EXPENSE,” he wrote.

Trump has repeatedly argued that lower rates would significantly reduce the cost of servicing US debt.

Tariffs cited as justification for lower rates

The President linked his push for rate cuts to his administration's tariff policies, claiming they have strengthened the US economy and boosted government revenues.

“Because of the vast amounts of money flowing into our Country because of Tariffs, we should be paying the LOWEST INTEREST RATE OF ANY COUNTRY IN THE WORLD,” Trump said.

He described other countries as“low interest rate paying cash machines” benefiting from the US economy.

“With a mere flip of the pen, $BILLIONS more would come into the U.S.A., and these countries would have to go back to making money the old fashioned way, not on the back of America,” he wrote.

Despite tariffs, Trump said many countries continued to run trade surpluses with the US, though smaller than before.

Call for immediate rate cuts

Trump ended his post with a renewed demand for aggressive action by the central bank.

“The Fed should substantially lower interest rates, NOW!” he wrote.

“Tariffs have made America strong and powerful again... WE SHOULD BE PAYING LOWER INTEREST RATES THAN ANY OTHER COUNTRY IN THE WORLD!”

The Federal Reserve has so far resisted political pressure, maintaining that interest-rate decisions will remain guided by economic data.

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