U.S. President Donald Trump publicly criticized Federal Reserve Chairman Jerome Powell on Thursday, labeling him an "imbecile" and reiterating his demand for a reduction in interest rates.

During an event at the White House, Trump expressed strong dissatisfaction with Powell's stance, stating, "We are going to spend $600 billion a year because of an imbecile who says: 'I don't see enough reasons to lower rates now.'"

Currently, interest rates are set in a range between 4.25% and 4.5%.

Trump has asserted multiple times that the Fed should lower interest rates, particularly following the release of inflation data from May, which showed a slight increase of just one-tenth of a percentage point, lower than analysts' expectations.

In connection with this, Trump called for a full one-point cut in interest rates.

The next meeting of the Federal Open Market Committee (FOMC) is scheduled for June 17 and 18, where policymakers will discuss potential changes to interest rates.

Trump’s remarks come amidst ongoing debates regarding the appropriate monetary policy response to evolving economic conditions.

Powell, who was appointed by Trump in 2018 and subsequently reappointed by President Joe Biden for the term extending until May 2026, has maintained that the Federal Reserve operates independently from the executive branch.

In response to Trump's criticism, Powell has defended the Fed’s policies and actions, arguing that they are aimed at ensuring economic stability.

In addition to his criticism of Powell's current decisions, Trump has previously accused him of acting too late in responding to economic challenges and has suggested that he possesses greater knowledge than the Fed chair on matters of monetary policy.

Despite his frustrations, Trump has indicated a desire for coordinated action rather than punitive measures against Powell, acknowledging the legal limitations on his ability to dismiss the Fed chairman.