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United States President Donald Trump sharply criticized Federal Reserve Chair Jerome Powell on Wednesday, calling him "terrible" and suggesting he may have a "low IQ," while confirming he is considering "three or four" candidates to replace Powell once his term ends.
"I think he’s terrible," Trump told reporters during a a press conference following the NATO Heads of State and Government Summit in The Hague, Netherlands when asked about the Fed chair.
"I know within three or four people who I’m gonna pick," he added, saying Powell "goes out pretty soon fortunately." Trump accused Powell of being overly cautious and "very political," adding, "I think he’s a very stupid person, actually."
The president reiterated his demand for interest rate cuts, arguing that inflation is under control and the economy is thriving. "We have no inflation. We have a tremendous economy. Hundreds of billions of dollars of tariff money is pouring in. Factories are being built," Trump said, claiming nearly $15 trillion in investment was flowing into the U.S.
Despite his call for immediate cuts, Trump stated he would support a future rate hike if inflation rises: "He is an average mentally person. I'd say low IQ for what he does."
Speaking separately before the House Financial Services Committee on Tuesday, Powell said the Federal Reserve would remain cautious and wait for more economic data before making any policy moves.
"For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," Powell said.
The Fed chair emphasized that the central bank is monitoring the impact of Trump’s tariffs on inflation. "All forecasters expect a significant inflation impact from tariffs to appear soon, and we cannot ignore that," he said, noting the effects may begin showing up in June and July data.
Powell added that a weaker labor market or slower inflation could prompt the Fed to consider earlier rate cuts, while stronger data would justify holding or delaying such moves.
Earlier this week, Trump posted on Truth Social, "I hope Congress really works this very dumb, hardheaded person, over," referring to Powell.
In his testimony, Powell responded to criticism by stating, "We always do what we think is the right thing to do, and we live with the consequences."
Powell reiterated that the Fed’s job is to manage inflation and support maximum employment, not to respond to political pressure. He declined to comment on Trump’s policies or potential successors.
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