Is Trump Angry at Powell Again? Trump Escalates Attacks on Fed Chair Powell

U.S. President Donald Trump has intensified his public feud with Federal Reserve, Chair Jerome Powell, calling for his resignation and accusing him of misleading lawmakers regarding the cost of renovating the Fed’s headquarters.

Trump’s criticism, which spans both monetary policy and fiscal responsibility, underscores a growing political battle over the future direction of the central bank.

Trump’s Growing Hostility Toward Powell

Source: Routers

Speaking to reporters during a Cabinet meeting, Trump didn't mince words, “Then he should resign immediately,” he said in reference to Powell. “We should get somebody in there that’s going to lower interest rates.”

Trump has long criticized Powell, whom he appointed in 2018, for what he views as unnecessarily high interest rates.

Trump argues that Powell’s decision to hold rates steady is stifling economic growth and housing affordability. Despite a decline in inflation, the Fed has kept rates between 4.25% and 4.5% since December, citing uncertainty from tariff policies as a reason to delay cuts.

On social media, Trump doubled down: “CUT INTEREST RATES JEROME — NOW IS THE TIME!”

He also mocked Powell for “whining like a baby about non-existent inflation,” continuing a pattern of unorthodox and personal attacks on the central bank head.

Read Also: Fed Chairman Backs Crypto? Here Are Crypto Activity Rules Now

Renovation Scandal Fuels Political Fire

Fueling Trump’s outrage is the controversy surrounding the Federal Reserve’s ongoing renovation of its Washington, D.C. headquarters.

The project has been heavily scrutinized for its ballooning costs and rumored extravagant features, such as luxury amenities, claims Powell has forcefully denied.

“There’s no VIP dining room, there’s no new marble,” Powell testified before Congress on June 25. “There are no special elevators… no roof terrace gardens.”

Despite Powell’s clarification and an official letter to the Senate Banking Committee asserting fiscal responsibility, critics remain unconvinced.

Bill Pulte, head of the Federal Housing Finance Agency and a Trump ally, labeled Powell’s testimony “deceptive” and called for a formal investigation. Trump swiftly amplified Pulte’s demand, pushing once again for Powell’s resignation.

Speculation on Powell’s Successor

Source: The New York Times

With Powell’s term set to end in May 2026, Trump has already indicated he is vetting candidates to replace him.

He claimed to have a shortlist of “three to four” individuals who would support his push for rate cuts. Among those speculated is Treasury Secretary, Scott Bessent.

Though Bessent deflected questions about a possible nomination, saying, “I think I have the best job in Washington,” he left the door open: “I will go where the president thinks that I am best suited.”

Read Also: Is Powell Not Happy with Trump? Discussing the Tariff-Inflation Conundrum

Can Trump Actually Fire Powell?

Despite Trump’s threats and his history of firing high-level officials, the president’s power to remove the Fed Chair is constitutionally limited. The Federal Reserve was deliberately designed as an independent body to shield it from political influence.

The Chair is just one vote on the 12-member Federal Open Market Committee (FOMC), where decisions are made by consensus.

Trump will only be able to appoint two of the FOMC members during the next four years due to term limitations.

According to economists like Jason Furman, former adviser to President Obama, the structure of the Fed ensures that no single appointee can unilaterally steer policy.

“A central bank’s independence is pretty much the only thing macroeconomists know of that’s a free lunch,” said Furman. “Authoritarian interference, like in Turkey, leads to disaster, massive inflation and economic collapse.”

Internal White House Drama

The Powell controversy is just one of many issues Trump has weighed in on during his often-chaotic Cabinet meetings. From lamenting media coverage to calling out foreign leaders, Trump’s freewheeling commentary often veers into unexpected territory.

At one recent meeting, he even discussed White House décor, polling his Cabinet on whether to gold-leaf the ceiling.

Read Also: Jerome Powell’s Take on Rate Cut: Why It’s Still Uncertain

Conclusion: What’s Next for the Fed?

Jerome Powell remains at the helm of the Federal Reserve—for now. But with mounting pressure from Trump, ongoing investigations into the Fed’s renovation project, and speculation over a replacement, Powell’s remaining term may be turbulent.

While the Fed continues to hold rates steady in response to global economic uncertainties, political interference looms as a potential threat to the institution’s credibility and independence.

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FAQ

Why is Donald Trump criticizing Jerome Powell?

Trump is upset that Powell has kept interest rates high and alleges Powell misled Congress about the Fed’s headquarters renovation costs.

Can Trump fire the Fed Chair?

No, the Fed Chair is protected by law and cannot be fired without cause. The Supreme Court has reinforced this independence to protect monetary policy from political interference.

What are the consequences of high interest rates?

High interest rates can reduce borrowing and investment, slowing down economic growth. However, they are also used to control inflation.

Who might replace Powell in 2026?

Trump has hinted at having a shortlist of candidates. One name that has surfaced is Treasury Secretary Scott Bessent, though he has not confirmed any plans.

How does the Fed’s renovation relate to Trump’s criticism?

Reports of ballooning costs and alleged luxuries in the renovation project have given Trump and allies a new line of attack, claiming Powell is not being transparent or fiscally responsible.