Trump slams Powell, says ‘unnecessary’ high interest rates hurting economy, national security

US President Donald Trump slammed Federal Reserve Chair Jerome Powell on Thursday, accusing him of delaying interest rate cuts and hurting the US economy, national security and global competitiveness after the Federal Open Market Committee (FOMC) decided to keep interest rates unchanged. In a post on his social platform Truth Social, Trump said Powell kept rates unchanged even though there was no reason to keep them high, adding that this decision is hurting US national security.

“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.”

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‘He is costing America hundreds of billions of dollar a year’

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

He added that the US should have a substantially lower rate, noting that now even Powell believes that inflation is not a problem or threat any more.

On Wednesday, the Fed decided to keep the key borrowing rate unchanged, maintaining the federal funds rate in the 3.5% to 3.75% range, in line with market expectations.

“Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated,” the FOMC said in its announcement.

The Fed cut rates by 25 bps at each of the previous three FOMC meetings, ending 2025 with a cumulative reduction of 75 bps.

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‘US should be paying the lowest interest rate in world’

Trump said the US should be paying the lowest interest rate in the world.

Trump also linked interest rate policy with his tariff strategy, saying tariffs have resulted in vast amounts of money flowing into the US. On that basis, he said America should be able to borrow at cheaper rates than any other country.

He claimed that many countries benefiting from low interest rates were able to do so only because of the US economy’s strength, and that a tougher trade stance could force them to “go back to making money the old-fashioned way”.

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

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

The next Fed policy meeting is scheduled for March 17–18.