President Trump persists in pressing Powell, the Federal Reserve Chair, for reduced interest rates,, expressing his belief that Powell fails to grasp the necessity, saying "He just doesn't get it."
In a continuing saga, former U.S. President Donald Trump and Federal Reserve Chair Jerome Powell find themselves at odds over monetary policy and interest rates. Trump has been vocal in his criticism of Powell, believing that the Fed's decisions to keep interest rates relatively high are detrimental to the economy and his political standing.
The Origins of the Conflict
Jerome Powell was initially nominated as Fed Chair by Trump during his first term and confirmed by the Senate with broad bipartisan support. However, Trump's dissatisfaction grew quickly when Powell's Federal Reserve pursued a policy of higher interest rates to combat inflation. Trump publicly pressured Powell to cut interest rates immediately, calling him derogatory names like "numbskull" and accusing him of being a "Trump hater" and "stubborn mule."
Trump even contemplated firing Powell, an action that would be legally untested and highly controversial. He raised this idea in meetings with Republican lawmakers but later described firing Powell as "highly unlikely."
Trump’s attacks extended beyond monetary policy. He also criticized Powell over the Federal Reserve’s $2.5 billion renovation of its headquarters, accusing the Fed of cost overruns and publicly shaming Powell at a construction site visit.
The Current State of Affairs
Powell remains Fed Chair, having been renominated by President Joe Biden for a second term extending through May 2026. Despite continuing to criticize Powell and the Fed’s interest rate policies publicly, Trump has not taken official steps to remove him, likely due to the potential economic and legal risks.
Experts warn that while Trump's concerns about rising debt costs and high interest rates have some merit, the notion of firing Powell to solve these issues is misguided. It risks undermining Federal Reserve independence and could cause harmful fiscal dominance where monetary policy becomes subordinated to political pressures.
The real solution, they argue, lies not in changing Fed leadership but in addressing the underlying problem of excessive government spending.
The Future of the Feud
As of July 2025, the conflict between Trump and Powell continues. Trump has been vocal in his criticism, referring to Powell as a "stubborn mule and a stupid person." Senators Roger Marshall and Rick Scott have also called for Powell to resign.
Meanwhile, Bill Pulte, the U.S. Federal Housing Finance Agency Director, has urged Powell to resign due to his refusal to lower interest rates and spending $2.5 billion on building renovations. However, Powell remains in place, supported by Biden.
The future of this high-profile dispute remains uncertain, with experts cautioning that removing Powell would be risky and symbolic of dangerous political interference in monetary policy.
[1] Trump's Feud with Powell: A Timeline [2] Trump Attacks Powell Over Fed Renovation Costs [3] The Risks of Trump Firing Powell [4] Trump's Criticism of Powell and the Fed [5] Trump's Threats to Fire Powell
- The ongoing disagreement between former U.S. President Donald Trump and Federal Reserve Chair Jerome Powell, rooted in monetary policy and interest rates, has seen Trump vocalize criticism towards Powell, accusing him of being a "Trump hater" and "stubborn mule."
- The state of the economy is a topic of debate, with Trump arguing that the Fed's higher interest rates, aimed at combating inflation, are detrimental to overall business growth and his political standing.
- Despitthis ongoing dispute, Trump has neither formally removed Powell nor carried out his threats to do so, likely due to potential economic and legal consequences.
- Beyond monetary policy concerns, Trump has criticized Powell over the Federal Reserve's spending on renovations for its headquarters, stating that the project incurred cost overruns.
- Experts suggest that the issue at hand is not about Fed leadership but rather excessive government spending, and that any attempts to interfere with Federal Reserve independence could lead to harmful consequences, such as fiscal dominance.
