US Federal Reserve Chairman Jerome Powell, in his press briefing on May 7, 2025, responded to criticism of US President Donald Trump questioning his role as the head of the Fed. Powell said that Trump’s take doesn’t affect his job at all, and he will be doing the same thing he has done using the monetary tools for the US economy. 

Powell highlighted how he seeks to foster the maximum employment and price stability for the benefit of the people of the United States using the monetary policy tools available at the Federal Reserve.

“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,” said Jerome Powell in his press address.

Powell also reiterated that as a Federal Reserve Chairman, he and his team will always consider economic data over any other stance.

“We’re always going to consider only economic data, the outlook, the balance of risks, and that’s all we’re going to consider. So it really doesn’t affect either our job or the way we do it,” he said. 

Trump’s criticism

In a Truth Social post, Trump directed Jerome Powell to cut the key benchmark rates on April 21, citing the risk of the US economy slipping into a slowdown.

“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,” said Trump in his Truth Social post.

In April, Trump repeatedly took jabs at Powell for his economic policies.

“Inflation is basically down and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job,” said the US President. “You’re not supposed to criticise the Fed. You’re supposed to let him do his own thing — but I know much more than he does about interest rates.” 

US Fed Policy

The US Federal Reserve decided to keep its key benchmark interest rates unchanged at the range of 4.25% to 4.50% on Wednesday, May 7, 2025, amid economic uncertainty and prevailing risk of inflation caused by the raging trade war.

“The Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 per cent,” said Fed’s FOMC committee.

Powell also reiterated his official stance from the March 2025 policy meeting and said that he does not feel that the US economy is in the “right place” for a rate cut, and he is in no hurry to cut the key benchmark rates.

“We think the right we’re in the right place to wait and see how things evolve. We don’t feel like we need to be in a hurry,” said Jerome Powell.

According to the Fed’s FOMC release, the committee is seeking to continue monitoring the state of the US economy amid the rising uncertainties to prevent an unforeseen rise in inflation or unemployment.

“The Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals,” said the FOMC in its official release.