US President Donald Trump on Friday took yet another aim at Federal Reserve Chair Jerome Powell, urging the Fed’s board of governors to take full control of the central bank’s interest rate decisions. Trump’s demand came just hours after disappointing job numbers highlighted a cooling economy.
‘The Board Should Assume Control’
Frustrated by Powell’s decision to keep short-term interest rates steady, Trump, in a fiery post on Truth Social, Called Powell “stubborn,” and wrote, “If Powell doesn’t substantially lower rates… THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”
The US President’s comment follows months of escalating criticism from Trump, who sees rate cuts as a way to spark growth and ease debt burdens.
Dissents From Within the Fed
Two of Trump’s own appointees to the board, Christopher Waller and Michelle Bowman, released statements Friday acknowledging that tariffs may have only a one-time inflationary effect, as reported b The Associated Press. Both had pushed for modest rate cuts during Wednesday’s Fed meeting.
Trump welcomed their dissents, calling them “strong” despite still being far short of the 3-point rate cut he has been advocating. That would bring the current benchmark rate from 4.33% down to 1.33%, per the US-based news agency.
Economic and Political Pressures Collide
July’s job report added more fuel to the fire, with only 73,000 jobs added, and downward revisions dropping June and May numbers to just 14,000 and 19,000, respectively. Trump argues inflation is no longer a threat, despite the Fed’s preferred measure still running at 2.6%, above its two percent target.
In a separate social media post, Trump called on Powell to resign following the announcement that Fed Governor Adriana Kugler would step down next week. “She knew he was doing the wrong thing on Interest Rates. He should resign, also!” Trump wrote.
Can Trump Fire Powell?
Following a Supreme Court ruling in May, Trump can’t fire Powell over policy disagreements. However, the White House is reportedly exploring whether Powell’s alleged oversight of $2.5 billion in cost overruns at the Fed renovation projects could justify removal “for cause.”
Powell’s current term runs through May 2026, meaning Trump would have to wait to officially replace him, unless legal maneuvering changes the equation.
