“Stubborn Idiot”: Trump Criticizes Powell and Demands Immediate Interest Rate Cut

• Trump Presses Fed for Immediate Rate Cut
• Fed keeps rates unchanged, cryptocurrencies react with a drop
• Powell continues to be the target of criticism from President Trump

U.S. President Donald Trump has again publicly criticized Federal Reserve Chairman Jerome Powell following the monetary authority's decision to keep interest rates unchanged for the fifth consecutive meeting. In a post on the Internet, Social Truth , Trump called Powell a “stubborn idiot” and called for the Fed Board of Governors to take control of monetary policy.

"Jerome 'Too Late' Powell needs to substantially lower interest rates, NOW," Trump wrote. "If he continues to refuse, the Board must step up and do what everyone knows needs to be done!"

The statement reinforces the tension between the Executive Branch and the central bank, which has sought to preserve its independence in the face of political pressure. While the president lacks the legal authority to fire Powell, he can influence the Fed's direction by appointing new members to the Board of Governors, provided they are approved by the Senate.

Despite the formal limitations, the impact of Trump's criticism is reflected in the market. After the Fed's decision, Bitcoin fell about 3%, trading at just under $115, while Ethereum fell almost 6%. The strengthening dollar and fears of inflation, with the annual rate at 2,8%, contributed to a cooling of appetite for risk assets such as cryptocurrencies.

Trump's stance has gained support among financial figures. Deputy Treasury Secretary Michael Faulkender stated that "there's no reason to keep interest rates this high," while Anthony Pompliano called the stability decision "a big mistake."

The Fed refuses to cut interest rates, but every American will benefit from lower rates.

Eventually the Fed will capitulate. pic.twitter.com/gIbf8ofQvj

— Anthony Pompliano 🌪 (@APompliano) July 31, 2025

Beyond political pressure, economic data also shows growth. Second-quarter GDP grew 3%, reinforcing the arguments of those advocating interest rate cuts to further stimulate economic activity. However, expectations of a September reduction appear to be fading, which could maintain volatility in cryptocurrency markets in the coming months.