- Trump harshly criticized Jerome Powell for keeping interest rates too high, suggesting he’s acting out of political bias and will be “out” in eight months.
- Trump called for U.S. interest rates to be slashed to 1%, arguing current levels cost the country over $1 trillion annually.
- Treasury Secretary Scott Bessent backed Trump’s remarks, calling for a deep internal Fed investigation into its “mission creep” and spending practices.
President Donald Trump took sharp aim at Federal Reserve Chair Jerome Powell during a Tuesday press briefing at the White House, openly criticizing the Fed’s current interest rate policy and signaling Powell’s imminent departure within the next eight months. Speaking during a joint appearance with Philippine President Ferdinand Marcos Jr., Trump accused Powell of being “too late” and “politically motivated” in his decision-making, particularly on interest rates.
The president did not mince words, claiming that Powell’s high-rate stance has hindered homebuyers and strained the U.S. economy. “People aren’t able to buy a house because this guy is a numbskull,” Trump said, placing the blame squarely on Powell for what he characterized as stubbornly elevated rates. Trump suggested that European central banks have already begun easing, while the U.S. continues to suffer from inaction.
Push for Rate Cuts and Fiscal Relief
Trump argued that the U.S. interest rate should be closer to 1%, rather than the current 4%, contending that the difference is costing the country more than $1 trillion annually in interest payments. The demand for lower rates has become a key part of Trump’s economic platform, especially as the 2026 election cycle heats up and inflation shows signs of easing.
Citing Europe’s rate cuts as justification, Trump painted the Federal Reserve as out of sync with global monetary trends. He also implied that the Fed’s reluctance to act stems from political calculations, not economic prudence.
Criticism of Fed Spending and Powell’s Legacy
Beyond monetary policy, Trump also took aim at what he labeled wasteful spending by the central bank. He denounced a Federal Reserve building project with a ballooning price tag of $2.7 billion—up from its original budget—calling it “another Biden deal.” The president questioned the necessity of such a project and used it as a broader critique of government mismanagement.
Treasury Secretary Scott Bessent echoed Trump’s concerns, stating that the Fed was suffering from “mission creep” and had ventured too far beyond its core mandate. He confirmed that he had requested a “big internal investigation” into the institution’s operations and financial oversight practices.
Outlook: Powell’s Tenure Nearing Its End
With only eight months remaining in Powell’s term, Trump made clear that change is on the horizon. The administration’s tone indicates it may look to appoint a more dovish Fed chair willing to aggressively lower interest rates and focus on economic stimulus.
Whether Powell will serve out the remainder of his term or resign under political pressure remains to be seen, but the president’s comments leave little doubt that the administration is looking to recalibrate the Fed’s direction well ahead of the 2026 election.
