In a renewed attack on the Federal Reserve, President Donald Trump has publicly criticized Fed Chair Jerome Powell, labeling him "stupid" and questioning his competence in managing the nation's monetary policy. These remarks come just hours before the Federal Open Market Committee (FOMC) is expected to announce its latest decision on interest rates and provide an update on its policy outlook.

Trump expressed his frustration that the Fed's key benchmark rate should be significantly lower. “So we have a stupid person. Frankly, he probably won't cut today,” Trump told reporters at the White House. He has repeatedly called on the Fed to cut interest rates, citing moves by European central banks and warning that delays could stall the US economy. Trump also stated that "Europe had 10 cuts, and we had none. And I guess he's a political guy. He's a political guy who's not a smart person, but he's costing the country a fortune." He also referred to Powell as "Too Late," "a fool," "a major loser," and a "numbskull."

The President's comments raise concerns about the Fed's independence, which is crucial for maintaining economic stability. The Federal Reserve is designed to remain apolitical, with a mandate to keep unemployment low and control inflation. Economists generally agree that independent central banks tend to achieve better economic outcomes.

Adding another layer to the controversy, Trump also joked about the possibility of appointing himself as the head of the Federal Reserve. "Am I allowed to appoint myself?" he said. "Am I allowed to appoint myself at the Fed? I'd do a much better job than these people."

However, legal experts suggest that such an appointment would be highly improbable. The Federal Reserve Act enshrines the Fed's independence, making it difficult to remove a sitting chair without significant cause. While the exact legal status of the Fed chair is somewhat unsettled, it is generally understood that a president cannot simply appoint additional members to the Federal Reserve Board; they must wait for vacancies to arise.

These recent statements are a continuation of Trump's long-standing criticism of Powell. He has frequently urged the Fed to lower interest rates, arguing that it would stimulate economic growth. Trump has also claimed that Powell is worried about inflation, while dismissing such concerns, saying "if there's inflation in six months or nine months, you lower the rates or you raise the rates. you can do whatever you want".

The Federal Reserve is widely expected to maintain current interest rates at the range of 4.25%-4.50%. Federal Reserve officials have indicated their desire for greater certainty regarding the economy's direction towards either increased inflation or reduced growth before providing additional interest rate guidance, yet the possibility of both price increases and employment reduction continues to exist.