President Trump lashed out at Federal Reserve Chairman Jerome Powell on Thursday morning, May 8, one day after the Fed said that it would not lower interest rates. Trump urged Powell to lower rates after implementing new global tariffs, but Powell has expressed concerns that doing so would lead to high inflation. The president insulted Powell on his Truth Social page.
What did President Trump say?
President Trump posted: “’Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue. Other than that, I like him very much! Oil and Energy way down, almost all costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into the U.S. – THE EXACT OPPOSITE OF ‘TOO LATE!’ ENJOY!”
The “Too Late” nickname appears to be a reference to the president’s accusation that Powell and the Fed have been too slow and hesitant to cut interest rates. On Wednesday, the Fed held interest rates steady at between 4.25% and 4.5%.
Prior to the statement, following backlash from investors and economists, President Trump had toned down his calls for Powell to step aside.
What did Chairman Powell say?
In announcing the Federal Reserve’s decision to keep rates steady, Powell warned about the consequences that Trump’s tariffs might have on the economy, stating: “If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment.“
When the economy experiences high inflation, high unemployment and stagnant demand all at once, economists call it “stagflation.” In light of these concerns, Powell explained, it was the right call to keep rates steady, at least for now.
“We don’t feel like we need to be in a hurry,” Powell said. “We feel like it’s appropriate to be patient.”
Stagflation last happened in the U.S. in the 1970s and early 80s. The March 2025 inflation rate, as measured in the Consumer Price Index according to the Bureau of Labor Statistics, was 2.4%, while the unemployment rate for April was 4.2%.
What did GOP donor Ken Griffin say?
Meanwhile, Republican Ken Griffin, the billionaire founder and CEO of the Citadel hedge fund, warned that the middle class will bear the brunt of Trump’s tariffs on imported foreign goods.
Griffin told CNBC: “Tariffs hit the pocketbook of hardworking Americans the hardest. It’s like a sales tax for the American people. It’s going to hit those who are working the hardest to make ends meet. That’s my big issue with tariffs. It’s such a painfully regressive tax.”
President Trump levied the new tariffs back in April, then later announced a 90-day pause on many of them, with the notable exclusion of China. Chinese products are now subject to a 145% levy. China has responded with a 125% levy on American goods.
Griffin voted for Donald Trump and has donated big money to Republican candidates. But Griffin said that Trump’s trade policy is spoiling the brand of the United States, and that voters elected Trump to deal with inflation and what he believes are the failed economic policies of the Biden administration.
“The president really does have to focus on managing inflation,” Griffin said, “because I think it’s front and center, the primary score card that American voters are going to think about when it comes to this midterm election.”
He then suggested the three big issues of trade, tax cuts and deregulation will dictate whether there will be economic growth over the next two years.
