In a dramatic turn of events, former President Donald Trump unleashed a scathing attack on Federal Reserve Chair Jerome Powell as the Fed announced it would hold interest rates steady for the fourth consecutive time. This decision, made amid rising economic uncertainty, has sparked a fierce exchange between Trump and Powell, with the former president labeling the Fed chair “not a smart person” and accusing him of political maneuvering.

During a press briefing, Powell confirmed that the Federal Open Market Committee would maintain the federal funds rate in the range of 4.25% to 4.5%, citing a solid economic position despite ongoing inflation concerns and geopolitical tensions. Trump, speaking to reporters on the White House lawn, expressed frustration, claiming that if the Fed cut rates, it would save the country billions and spur economic growth. “We should be 2 points lower,” he declared, emphasizing the need for more aggressive monetary policy.

The Fed’s decision comes as inflation has shown signs of easing, yet Powell warned that tariffs and global instability could complicate the economic landscape. Analysts predict that the Fed may still consider rate cuts later this year, but uncertainty looms large with the potential for increased deficits due to proposed tax cuts.

As tensions rise between the Trump camp and the Federal Reserve, the implications for American consumers are profound. With interest rates holding steady, those contemplating major purchases like homes and cars may need to rethink their strategies. The economic stakes are high, and with Trump’s barbs directed at Powell, the battle for the future of U.S. monetary policy is far from over. The next Fed meeting in July could prove pivotal as the nation watches closely for signs of how these power dynamics will shape the economy moving forward.