US President Donald Trump sharply criticized the Federal Reserve’s decision to cut interest rates by 25 basis points on Wednesday, declaring that the move was “not enough” at a time when inflation continues to squeeze American consumers.
Speaking at a business roundtable shortly after the announcement, Trump expressed disappointment with the Fed’s modest quarter-point reduction and directed personal criticism toward Federal Reserve Chair Jerome Powell. According to CNN, Trump referred to Powell as a “deadhead” and a “stiff,” arguing that the chairman had opted for a “rather small” cut instead of a more aggressive approach.
Trump insisted that the Fed should have doubled the reduction given the current inflationary pressures. “I’m looking for somebody that will be honest with interest rates,” he said, adding, “Our rate should be much lower.”
The President went on to suggest that the central bank needs to adopt a more traditional, growth-friendly monetary strategy. “We’re going to go back to the old days,” Trump said. “When we announced great results, it doesn’t mean we’re going to raise interest rates and try and kill it.”
Trump’s remarks come amid heightened scrutiny of the Federal Reserve’s handling of inflation and growing debate over how aggressively the central bank should act to stimulate the economy while prices continue to rise.