- Trump blasted Fed Chair Jerome Powell, calling him “too stupid” and “too political” after the central bank chose not to cut interest rates.
- Tensions are rising over Powell’s future, with Trump hinting at possible removal before Powell’s term ends in 2026, raising concerns about Fed independence.
- Two Trump-appointed Fed governors broke ranks, voting for a rate cut—marking the first dual dissent on a hold decision in over three decades.
President Donald Trump lit into Federal Reserve Chair Jerome Powell on Thursday morning, tearing through him in a furious Truth Social post after the Fed opted—once again—not to cut interest rates.
“Jerome ‘Too Late’ Powell has done it again!!!” Trump wrote. “He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair.” Not exactly subtle.
Trump went on to claim that Powell is “costing our Country TRILLIONS OF DOLLARS,” before pivoting into a rant about renovations at the Fed’s headquarters in D.C., calling it “one of the most incompetent, or corrupt, renovations of a building(s) in the history of construction!”
The Fed declined to comment on the post, as expected.
The Long, Heated History Between Trump and Powell
This isn’t new territory. Trump’s had it out for Powell—his own 2017 appointee—for years now. He’s publicly pushed Powell to slash interest rates aggressively, giving him nicknames like “Too Late Powell,” “numbskull,” and more recently, “Trump hater.” The drama has led to growing speculation: Will Trump try to oust Powell before his term ends in May 2026?
For now, Trump says that’s “unlikely”… but he’s also left the door open. In recent weeks, he’s suggested Powell should resign or could be removed, not just for his monetary policy decisions but even for the over-budget Fed building renovation project. It’s a mix of policy critique and political theater—and it’s escalating.
If Trump does move to push Powell out, it would mark a huge shift—one that many believe would compromise the independence of the central bank, something that has underpinned market confidence for decades.
What the Fed Actually Said
Despite Trump’s attacks, the Fed’s stance remained relatively steady. In its latest policy update, the central bank noted continued strength in the labor market and moderate progress on inflation—but said it was still too early to declare victory.
“In assessing the appropriate stance of monetary policy,” the Fed’s official statement read, “the Committee will continue to monitor the implications of incoming information… and would be prepared to adjust policy as needed if risks arise.”
Interestingly, there were two dissenting votes this time—Michelle Bowman and Christopher Waller, both Trump appointees. They supported a 25 basis point cut, marking the first dual dissent on a rate hold in more than 30 years, per The New York Times.
Both Bowman and Waller have been vocal about loosening policy, arguing that tariffs haven’t been as inflationary as expected and warning of hidden fragilities in the labor market.
The Political Stakes Keep Rising
Ahead of the Fed’s decision, Trump claimed Powell was choking off what should’ve been a roaring economy. “Each point that this gentleman keeps up costs us $365 billion a year,” he said. He’s argued the current rates are “at least three points too high,” and cutting them would supercharge the economy while trimming federal debt service costs.
Whether it’s economic policy or political messaging, Trump is clearly ramping up the pressure. With 2026 looming, and Powell still standing in his post? Expect more fireworks.
