Trump accuses Fed, Powell of creating inflation on heels of rate decision

President Donald Trump on Wednesday slammed Federal Reserve Chair Jerome Powell and the U.S. central bank, saying they “failed to stop the problem they created with Inflation” and have done a “terrible job on Bank Regulation.”

Trump’s reaction to the first Fed rate decision of his second term came less than a week after he said he would “demand that interest rates drop immediately.”

Powell has stressed the importance of the central bank’s independence from outside influence, and newly confirmed Treasury Secretary Scott Bessent has echoed that view.

But Trump, a critic of Powell, has questioned the longstanding tradition of Fed independence, saying he believes the president should get a say on interest rate decisions.

As a presidential candidate in 2024, Trump said he would not reappoint Powell when his current term as Fed chair ends in 2026, though he also said he would not try to end Powell’s tenure early. 

This is breaking news. Please refresh for updates.