President Donald Trump recently cited new inflation data as he continues to pressure Federal Reserve Chair Jerome Powell to lower interest rates, despite referring to Powell as a “numbskull.” Trump expressed frustration at Powell’s reluctance to lower rates, emphasizing the financial burden of higher interest rates on the U.S. due to Powell’s decisions. The latest inflation figures, described by Trump as “incredible,” showed a slight uptick in May, partially offset by decreasing gasoline prices amidst ongoing trade tensions and tariffs.

During a meeting at the White House, Powell reiterated his stance of not allowing politics to influence monetary policy decisions, despite Trump’s persistent calls for rate cuts. The Federal Reserve, in its recent meeting, opted to maintain the key rate unchanged, citing uncertainties in the economic landscape. Despite Trump’s history of criticizing Powell since his appointment in 2017, he has stepped back from suggestions of removing him from his position, as the Federal Reserve Act restricts dismissals to cases of just cause rather than policy disagreements.

Looking ahead, Powell’s term is set to end in May 2026, prompting speculation about Trump nominating a successor in the near future. While discussions within the White House have touched on the possibility of firing Powell, Trump clarified that he currently has no plans to do so. Powell has warned about the inflationary impact of tariffs and highlighted the Fed’s role in adjusting interest rates to either stimulate economic growth or curb inflation. The Fed’s upcoming meeting in June will be crucial in determining its future monetary policy decisions.