Trump Slams Powell As ‘Most Destructive’ After Fed Holds Rates — But Most Retail Traders Feel He Got It Right

U.S. President Donald Trump on Thursday renewed his attacks on Federal Reserve Chair Jerome Powell, blaming him for costing the country “hundreds of billions of dollars” by holding interest rates steady.

In a series of posts on Truth Social following the Fed’s decision to maintain its benchmark rate, Trump said Powell was “truly one of the dumbest, and most destructive, people in government,” and claimed the central bank’s inaction had made it complicit. 

“Europe has had 10 cuts, we have had none,” he wrote.

Trump argued that U.S. interest rates should be 2.5 percentage points lower and suggested lower borrowing costs could save billions on short-term government debt under the Biden administration. 

“We have low inflation! Too Late’s an American Disgrace!” he added.

On Wednesday, the Federal Reserve held its federal funds rate unchanged at 4.25%–4.50%, which was in line with market expectations. 

The Federal Open Market Committee’s projections also indicate stagflationary pressures on the economy, with inflation expected to reach 3% in 2025, while the gross domestic product (GDP) is projected to grow at just 1.4%

Speaking at the White House, Trump said Powell, whom he appointed during his first presidential term, had performed poorly and jokingly mused about taking over the Fed himself. 

“Maybe I should go to the Fed,” he said. “Am I allowed to appoint myself at the Fed? I'd do a much better job than these people.”

Despite Trump’s remarks, a poll on Stocktwits shortly after the Fed decision showed that most retail traders supported the move. 

Of more than 30,000 respondents, 59% said holding rates was the right call, while 41% disagreed.

“Why would Powell cut rates now when almost every economic prognosticator agrees it is highly probable increased tariffs will likely add to inflationary pressures in the near term?” asked one user.

Another said, “Cut rates in a stagflationary environment and it just gets worse. Kill the inflation demon, stop printing endless money, and buying our own bonds, then focus on growth.”

However, several retail watchers criticized the Fed’s inaction, arguing that rate cuts are needed to revive the housing market and support first-time buyers, which could in turn boost the broader economy. Some also speculated that the decision was politically motivated. 

The SPDR S&P 500 ETF Trust (SPY) has risen 2.2% year-to-date, while the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, is up 3.7%. 

In contrast, the SPDR Dow Jones Industrial Average ETF (DIA) has slipped 0.2% over the same period.

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