- Trump called for the Federal Reserve Board to sideline Chair Jerome Powell, slamming him as “stubborn” for not slashing interest rates.
- He’s demanding a massive 3-point rate cut, arguing inflation is under control, though official data shows it slightly above the Fed’s 2% target.
- While Trump can’t fire Powell over policy disagreements, he’s exploring other reasons—like cost overruns on the Fed’s $2.5B renovation—to potentially remove him before his term ends in 2026.
President Donald Trump, never one to mince words, took to Truth Social again Friday, this time calling for the Federal Reserve’s board of governors to sideline Jerome Powell entirely. Trump’s beef? Powell hasn’t cut interest rates, despite Trump’s repeated—and very loud—requests.
Calling Powell “stubborn” (among other things in past rants), Trump urged the board to step in and take charge of monetary policy. “If Powell won’t substantially lower rates,” Trump posted, “THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!” No subtlety there.
The Fed’s job is to keep inflation in check and unemployment low, and so far this year, Powell’s been holding the line. Despite Trump’s escalating tariffs and mounting pressure, the Fed’s benchmark interest rate has stayed roughly steady, hanging around 4.33%. Powell says he wants to see how Trump’s economic policies play out before making any major moves.
Rate Cuts, Inflation Worries, and Powell’s Job on the Line?
Trump’s push for a massive 3-point rate cut has raised eyebrows. He says it’ll help boost growth and make it cheaper to borrow—great for the government’s debt load and folks looking to buy homes. But slashing rates that much, that fast? It could flood the economy with cheap money and drive inflation up faster than the Fed can handle.
And inflation’s already a bit above the Fed’s comfort zone. Their go-to price gauge is running at 2.6%, just over the 2% target. Not exactly a crisis, but not “no inflation” either—despite what Trump says.
Things got even weirder back in May when the Supreme Court hinted Trump couldn’t fire Powell just for policy disagreements. Since then, there’s been chatter from the White House about whether Powell could be canned for “cause,” like the way-over-budget $2.5 billion renovation of the Fed’s D.C. digs. Wild.
Powell’s Clock Is Ticking, But He’s Still in the Chair
For now, Powell’s still in charge, and legally, his term runs through May 2026. That means unless Trump finds a legal way to show him the door early, he’ll have to wait until then to put his own person in the chair. And if the Senate confirms that pick, then yeah—game on.
Until then, it’s clear this Fed feud isn’t cooling off anytime soon.
