Doesn't affect doing our job at all: US Fed Chairman on Trump's criticism

The benchmark interest rates of the US Federal Reserve were kept at between 4.25% and 4.50% in the most recent policy meeting held on May 7, 2025, under the direction of Chairman Jerome Powell. This meeting and its outcome were instead more about the steady and cautious approach the Fed is trying to telegraph to markets. The Federal Open Market Committee (FOMC) was essentially saying in this meeting, much as it had in the previous meeting, that it is closely watching developments and is willing to adjust either up or down if something unexpected comes along. This reflects a balancing act the Fed is trying to achieve: sticking to its inflation targets without derailing what seems to be a steady, albeit slow, economic expansion.

Powell’s Response to Trump’s Remarks

At the post-meeting press conference, Powell dealt with recent criticisms leveled by President Donald Trump. Trump had called for immediate rate cuts to stave off an impending economic slowdown. In an April post on Truth Social, he criticized Powell's pace in adjusting rates, dubbing him "Mr. Too Late," and pressed for some semblance of a timely response that would lower the cost of borrowing.

“With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump had said in his Truth Social post.

In response to all this, Powell stated that such comments from the executive branch have no impact on the Fed's operations. He went on to emphasize that the Federal Reserve remains completely focused on its dual mandate.

“Doesn't affect doing our job at all. We're always going to do the same thing, which is we're going to use our tools to foster maximum employment and price stability for the benefit of the American people,” US Fed Chairman Jerome Powell told the press. Powell asserted that the Fed is an independent agency and continues to make its policy calls on the basis of a three-part assessment of the data, risks, and outlook.

Vigilance and Flexibility

Inflation has eased somewhat, but the economy still faces some headwinds. So the Fed's strategy is one of vigilance and, maybe more important, flexibility. Fed Chair Jerome Powell made it clear in his press conference that the central bank is not in a rush to move, either tighten or loosen, but it stands at the ready to adjust if new risks pop up that could threaten to push the economy off its current positive trajectory.

Fed's FOMC committee reaffirmed its intention to make adjustments as necessary to keep supporting the economy while also safeguarding against a sudden rise in the unemployment rate or in inflation. The measured approach the Fed is now taking, and has signaled it will continue to take, aims to maintain a stable inflation rate and keep investors confident.