The Trump attacks Fed Chair Powell narrative intensified this week as the former president criticized Jerome Powell’s leadership. Trump expressed frustration after the Federal Reserve decided to keep interest rates steady. He continued pushing for rate cuts to support the economy.
Last month, Trump said he would not try to remove Powell before his term ends in May 2026. However, on Friday, he hinted that he might reconsider. Trump used harsh language in a post on Truth Social, calling Powell a “numbskull,” “moron,” and “dumb guy.” This marked a sharp escalation in his criticism.
Earlier in the week, the Fed held its benchmark interest rate at 4.25% to 4.5%. Trump immediately voiced his displeasure, accusing Powell of costing America billions. He blamed the Fed Chair for reluctance to lower borrowing costs amid economic uncertainty.
In his Truth Social post, Trump acknowledged that his criticism may make Powell’s job harder. He said, “I’ve been nice, neutral, and nasty, and the first two didn’t work.” Trump suggested that he might push for Powell’s removal, despite legal hurdles protecting independent Fed officials.
Trump’s post included a chart comparing U.S. interest rates to those of 43 other countries. The U.S. rate ranked among the highest, tied with nations such as Cameroon and Israel. He questioned why the Fed board does not override Powell, calling him a “total and complete moron.”
Powell was originally appointed by Trump during his first term. President Biden nominated him for a second term in 2022. Powell’s current term expires in May 2026. According to legal precedent, Fed governors can only be removed for cause, making firing difficult.
At a recent news conference, Powell dismissed Trump’s remarks. He said the Fed’s goal remains a strong economy, stable prices, and maximum employment. Powell emphasized that the current policy effectively responds to economic changes.
Trump also criticized Powell for focusing on inflation and not cutting rates more aggressively. He claimed that if Powell lowered rates to 1% or 2%, the U.S. could save up to $1 trillion annually. Trump blamed Biden’s administration for inflation and praised the economy’s growth, expecting improvements due to tariffs and factory investments.
Overall, the Trump attacks Fed Chair Powell saga highlights growing political tension surrounding monetary policy. Markets and businesses continue watching these developments closely as interest rate decisions affect borrowing costs and economic growth.
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