Former President Donald Trump once again criticized Federal Reserve Chair Jerome Powell on Friday, urging the central bank to cut interest rates — and acknowledging that his harsh words might be making that decision harder. On social media, Trump called Powell a “numbskull” and said: “I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing — lowering Rates — but I’ve tried it all different ways. Nice and neutral didn’t work!”
His comments came as Federal Reserve Governor Christopher Waller suggested the Fed should consider lowering rates as early as July.
For Texas, this debate over interest rates comes at a critical time. With the state’s booming economy — driven by energy, technology, and a surge in population growth — borrowing costs are key to business expansion, home building, and infrastructure investment. Many Texas companies and developers have been waiting for relief from high interest rates that have made loans more expensive.
In a CNBC interview, Waller noted that while Trump’s tariffs could cause a short-term rise in prices, the Fed should look beyond these “one-off” shocks and focus on supporting continued economic growth. He stopped short of backing the deep rate cuts Trump wants, suggesting instead a gradual approach.
Trump’s push for rate cuts reflects concern that high borrowing costs are straining businesses — including those in Texas — and forcing the government to pay more to service its debt. However, the Fed’s mandate is to keep inflation in check and promote full employment, not to manage government debt.
So far, inflation in Texas and across the country has remained moderate, though some experts warn that price pressures could increase as tariffs ripple through supply chains. Meanwhile, the state’s job market continues to outperform much of the nation, giving the Fed more reason to be cautious.
As the Fed weighs its next steps, businesses, homeowners, and investors across Texas are watching closely — hoping for policies that will support growth without triggering a new wave of inflation.