President Trump sharply criticized Federal Reserve Chair Jerome Powell on Truth Social, calling him “a real dummy” and blaming him for “costing America $Billions,” as Powell opted to keep interest rates steady—fueling tension ahead of Powell’s term ending in May 2026.
At a Glance
- Trump labeled Powell “a real dummy” and threatened to reconsider firing him ahead of term expiration
- Despite sustained criticism, Powell secured unanimous support from the FOMC to hold interest rates at 4.25–4.50%
- The President even mused about appointing himself as Fed Chair, suggesting he’d “do a much better job”
- Trump praised calls from allies like FHFA Head Bill Pulte, who demanded Powell’s resignation over rate decisions
- A Supreme Court ruling reaffirmed that removing a Fed Chair absent misconduct would be illegal, protecting Powell’s position
Trump’s Blunt Criticism
On June 19, Trump slammed Powell on Truth Social: “Too Late—Powell is the WORST. A real dummy, who’s costing America $Billions!” He stressed frustration that his public pressure hadn’t forced an early rate cut, aimed at stimulating the economy, according to Newsweek.
Powell Defends Fed’s Independence
The Fed’s Federal Open Market Committee unanimously maintained the benchmark rate at 4.25–4.50%, citing inflation and slowing growth. Powell emphasized that decisions must remain data-driven and insulated from political influence, as reported by Reuters. The Supreme Court has labeled the Fed “a uniquely structured, quasi-private entity,” reinforcing that firing a Fed Chair without cause would violate precedent.
Watch a report: Trump reconsidering firing Powell amid rate feud?
Political Pressure Grows
Trump’s criticism found backing from allies including Bill Pulte, who publicly called for Powell’s removal, arguing that high rates are depressing the housing market, according to Reuters. Still, Powell retains not just legal protection but consensus support on the board.
What’s at Stake
This showdown spotlights the tug-of-war between executive ambitions and institutional independence. As inflation remains sticky and economic growth slows, Powell’s next moves will face intense scrutiny—and resistance. That matters for markets, governance norms, and whether future presidents can politicize monetary policy.
