JD Vance Bashes Central Bank
The Vice President issued a pointed critique of the Federal Reserve on Wednesday, accusing the central bank of “monetary malpractice” for its refusal to lower interest rates. His comments followed the release of new inflation data showing that core inflation rose by just 0.1% in May, with annual headline inflation sitting at 2.4%—figures that came in lower than most forecasts.
Cooler Inflation Data Intensifies Pressure
The inflation numbers released Wednesday were unexpectedly mild. Core inflation, which excludes food and energy prices, saw very little growth, and headline inflation held at 2.4% year-over-year. Which may signal a moderation in price pressures, fueling the administration’s claim that higher interest rates are no longer necessary.
In response, the Vice President took to social media, echoing a long-standing position of President Donald Trump and asserting that continued inaction from the Fed constitutes economic negligence.
Trump’s Continued Criticism of the Fed
President Trump has persistently targeted Fed Chair Jerome Powell throughout the year, intensifying a narrative that the Federal Reserve is acting too slowly and conservatively. His language has grown increasingly personal and aggressive, calling Powell a “fool,” “major loser,“ and “Too Late“ in a series of Truth Social posts.
At the World Economic Forum in January, Trump declared that he would demand an immediate rate cut if re-elected, making monetary easing a cornerstone of his second-term economic strategy. The Vice President’s comments this week reflect a coordinated political effort to sway the Fed’s stance.
Powell Warns of Tariff-Driven Inflation
Despite mounting political pressure, the Federal Reserve has held firm. Chair Jerome Powell emphasized during May’s policy meeting that rising tariffs—many of which were championed by Trump—could elevate inflation risks. While those effects have yet to appear fully in economic data, Powell cautioned that prolonged tariff increases could trigger more persistent inflation, slow growth, and higher unemployment. The Fed has, therefore, opted to maintain its current rate levels as it monitors potential downstream effects.
Vances sharp rebuke may signal more aggressive rhetoric to come, setting the stage for a broader debate over central bank independence and the future of U.S. monetary policy.
