Trump Criticizes Powell: Interest Rates Threaten National Security

Trump Criticizes Fed Policy

Former President of the United States Donald Trump targeted Federal Reserve (Fed) Chair Jerome Powell, stating that keeping interest rates high threatens national security. Following the Fed's decision to keep interest rates stable at yesterday's meeting, Trump said in a statement on his Truth Social account, "There is no valid reason for Powell to keep interest rates high."

Comments on Inflation and Interest Rates

Trump indicated that Powell does not view inflation as a significant issue, asserting, "I argue that our country's interest rates should be significantly lower right now." He emphasized that high interest rates cost America hundreds of billions of dollars each year and described this as unnecessary.

Call for Interest Rate Cuts

In his post, Trump said, "Due to the significant amount of money flowing into our country because of tariffs, we must pay lower interest than any other country in the world. The Fed must reduce interest rates significantly now."

Fed's Interest Rate Decision and Powell's Remarks

The Fed kept the policy interest rate stable in the range of <%3.50–3.75%> following meetings on January 27-28. Powell stated in his assessment after the first monetary policy meeting of 2026, "We are strongly focused on employment and price stability." He noted that inflation has retreated from the high levels seen in 2022 but remains above the targeted %2.