Trump Insults Powell As Gop Donor Warns Tariffs Will Hurt Middle Class

President Trump lashed retired astatine Federal Reserve Chairman Jerome Powell connected Thursday morning, May 8, 1 time aft nan Fed said that it would not little liking rates. Trump urged Powell to little rates aft implementing caller world tariffs, but Powell has expressed concerns that doing truthful would lead to precocious inflation. The president insulted Powell connected his Truth Social page.

What did President Trump say?

President Trump posted: “’Too Late’ Jerome Powell is simply a FOOL, who doesn’t person a clue. Other than that, I for illustration him very much! Oil and Energy measurement down, almost each costs (groceries and ‘eggs’) down, virtually NO INFLATION, Tariff Money Pouring Into nan U.S. – THE EXACT OPPOSITE OF ‘TOO LATE!’ ENJOY!”

The “Too Late” nickname appears to beryllium a reference to nan president’s accusation that Powell and nan Fed person been excessively slow and hesitant to trim liking rates. On Wednesday, nan Fed held interest rates dependable astatine betwixt 4.25% and 4.5%. 

Prior to nan statement, pursuing backlash from investors and economists, President Trump had toned down his calls for Powell to measurement aside.

What did Chairman Powell say?

In announcing nan Federal Reserve’s determination to support rates steady, Powell warned astir nan consequences that Trump’s tariffs mightiness person connected nan economy, stating: “If nan ample increases successful tariffs that person been announced are sustained, they’re apt to make a emergence successful inflation, a slowdown successful economical maturation and an summation successful unemployment.“

When nan system experiences precocious inflation, precocious unemployment and stagnant request each astatine once, economists telephone it “stagflation.” In ray of these concerns, Powell explained, it was nan correct telephone to support rates steady, astatine slightest for now.

“We don’t consciousness for illustration we request to beryllium successful a hurry,” Powell said. “We consciousness for illustration it’s due to beryllium patient.”

Stagflation past happened successful nan U.S. successful nan 1970s and early 80s. The March 2025 ostentation rate, arsenic measured successful nan Consumer Price Index according to nan Bureau of Labor Statistics, was 2.4%, while nan unemployment rate for April was 4.2%.

What did GOP philanthropist Ken Griffin say?

Meanwhile, Republican Ken Griffin, nan billionaire laminitis and CEO of nan Citadel hedge fund, warned that nan mediate people will carnivore nan brunt of Trump’s tariffs connected imported overseas goods.

Griffin told CNBC: “Tariffs deed nan pocketbook of hardworking Americans nan hardest. It’s for illustration a income taxation for nan American people. It’s going to deed those who are moving nan hardest to make ends meet. That’s my large rumor pinch tariffs. It’s specified a painfully regressive tax.”

President Trump levied nan caller tariffs back successful April, past later announced a 90-day region connected galore of them, pinch nan notable removal of China. Chinese products are now taxable to a 145% levy. China has responded pinch a 125% levy connected American goods. 

Griffin voted for Donald Trump and has donated large money to Republican candidates. But Griffin said that Trump’s waste and acquisition argumentation is spoiling nan marque of nan United States, and that voters elected Trump to woody pinch ostentation and what he believes are nan grounded economical policies of nan Biden administration.

“The president really does person to attraction connected managing inflation,” Griffin said, “because I deliberation it’s beforehand and center, nan superior people paper that American voters are going to deliberation astir erstwhile it comes to this midterm election.”

He past suggested nan 3 large issues of trade, taxation cuts and deregulation will dictate whether location will beryllium economical maturation complete nan adjacent 2 years.