President Donald Trump questioned Federal Reserve Chairman Jerome Powell’s decision-making on interest rates and said he planned to speak with the central bank chief “at the right time.”
“I think I know interest rates a lot better than they do, and I certainly think I know them a lot better than the guy who’s primarily in charge of making that decision,” Trump said, in an apparent reference to Powell, while speaking to reporters at the Hall. Oval on Thursday. “If I disagree, I will make sure to make it clear.”
Asked whether he believed Fed officials would listen to him, Trump responded: “Yes.”
Trump’s comments came hours after he gave a video address to the world’s elite at the World Economic Forum in Davos, Switzerland, where he promised to pressure Saudi Arabia to reduce oil prices and called for an immediate drop in interest rates — moves he said would help ease prices for American consumers and strengthen the country’s economy.
“When oil prices go down, everything will be cheaper for the American people,” Trump told reporters. “When energy goes down, that will eliminate a lot of inflation. This will automatically bring interest rates down.”
A rise in energy costs was responsible for more than 40% of the rise in overall inflation in December, but the Fed must address price pressures in other parts of the economy as well. Excluding food and energy, the consumer price index increased 3.2% from the previous year.
Continues after advertising
While presidents traditionally avoid commenting directly on central bank policymaking, Trump told Bloomberg News during the campaign that he should be able to tell Powell how he thinks interest rates should change.
Powell, who faced frequent criticism from Trump during the president’s first term, said the central bank will make rate decisions based on what’s best for the economy and independent of political considerations or outside pressure.
After cutting rates three times in late 2024, Fed policymakers are expected to hold rates steady until they see inflation move further toward the 2% target.
Continues after advertising
Fed officials are scheduled to meet again on January 28 and 29 in Washington.
© 2025 Bloomberg L.P.
