Zaid

It also led to 9% inflation.

And while inflation has come down significantly, it's still higher than the Fed's 2% target.

Which brings me to today and the unprecedented beef between President Trump and Fed Chair Jerome Powell.

President Trump has been pushing for lower interest rates since he returned to the Oval Office.

See, lowering rates generally juice the economy and the stock market.

It makes borrowing cheaper for businesses and homebuyers.

So that would be good politically for President Trump.

And to be fair, the Fed has been cutting interest rates.

They cut rates three times in the second half of 2025, bringing the Fed funds rate down to a range of 3.5 to 3.75%.

But Trump wants these rates to be even lower.

The problem, though, is that inflation is still elevated.

It's running at 2.7%, which is above the Fed's 2% target.

And Fed Chair Jerome Powell has signaled that the Fed is going to be cautious about cutting rates even further until they're confident that inflation is under control.

Add in the fact that while the labor market is cooling, the unemployment rate right now is near historic lows.

So the Fed is in no hurry to keep cutting rates.

And that's why President Trump is not a fan of Fed Chair Jerome Powell right now.

What's funny is that Trump was the one who nominated Jerome Powell to be Fed Chair during his first term back in 2018.

But since being reelected, President Trump has relentlessly attacked Powell for his refusal to lower interest rates.

Trump has called Powell a lot of names.

He's called him clueless.