US President Donald Trump on Thursday (January 29) sharply criticized 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 USA, 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.
Fed holds rates steady
The US Federal Reserve left its benchmark interest rates unchanged at 3.5 per cent to 3.75 per cent after its January 27–28 policy meeting, citing modest job gains, signs of stabilization in the labor market and inflation that remains somewhat elevated.
In its policy statement released on January 28, the Federal Open Market Committee (FOMC) said it had decided to maintain the current rate range in support of its economic goals.
“In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 per cent,” the FOMC said.
FOMC voted 10–2 to keep rates on hold
The FOMC voted 10–2 to keep rates on hold, with Governors Christopher Waller and Michelle Miran dissenting in favor of a 25-basis-point rate cut.
The current pause follows a 25-basis-point reduction delivered at the Fed’s previous meeting in December 2025.
Powell strikes modestly hawkish tone
Speaking at a press conference after the meeting, Fed Chair Jerome Powell said the US economy was entering 2026 on solid footing and suggested that the outlook had improved.
“The economy is coming into 2026 on a firm footing,” Powell said, adding that “the outlook has clearly improved since the last meeting.”
He pointed to stabilization in the labor market and said the current policy stance was appropriate.
“Monetary policy is well positioned,” Powell said.
Powell stressed that future policy decisions would continue to be guided by incoming economic data rather than a preset path.
The Fed will make decisions “meeting by meeting,” Powell said, based on evolving economic conditions.
The central bank reiterated its commitment to its dual mandate of maximum employment and price stability, with a long-term inflation target of 2 per cent.
Inflation still elevated, jobs growth modest
The policy statement noted that inflation remains somewhat elevated, while job gains have been low and the unemployment rate has shown signs of stabilization.
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the Fed said.
The Committee added that it would closely monitor labor market conditions, inflation pressures and expectations, as well as financial and international developments.
The Federal Reserve said it stands ready to adjust policy if risks emerge that could threaten its goals.
The next Fed policy meeting is scheduled for March 17–18.
