Trump slams Fed after rate hold, vows to cut inflation

In a post on his Truth Social platform, Trump wrote that “the Fed failed to stop the problem they created with Inflation,” adding that the central bank “has done a terrible job on Bank Regulation.”

The decision marked the Fed's first interest rate move during Trump’s second term. The president-elect's comments came less than a week after he pledged to "demand an immediate interest rate cut."

During a press conference following the interest rate hold decision on Jan. 29, Powell emphasized the importance of the central bank's independence from external influences, a stance also previously supported by the new Treasury Secretary, Scott Bessent.

Trump stated that he would address the "failure of the Fed" by unleashing energy production in the United States, rebalancing international trade, and reigniting manufacturing. He added, "I will do much more than stopping inflation; I will make our country financially strong and otherwise, powerful again!"

He further mentioned, "Treasury is going to lead efforts to cut unnecessary regulation, and will unleash lending for all American people and businesses."

"If the Fed had spent less time on DEI, green energy, and fake climate change, inflation would never have been a problem. Instead, we suffered from the worst inflation in the history of our country!"

During his 2024 re-election campaign, Trump stated he would not reappoint Jerome Powell when his current term as Federal Reserve Chairman ends in 2026. However, he also noted that he would not attempt to end Powell’s term prematurely.