US President Donald Trump has been criticizing Federal Reserve Chair Jerome Powell for a very long time. Trump has complained about Powell over interest rates, and recent moves by his advisers indicate a more strategic and coordinated campaign.
Trump is not satisfied with Powell’s performance, though. In the month of May, a day after the Fed decided against lowering interest rates, Trump called Powell a “FOOL, who doesn’t have a clue” on his social platform, Truth Social.
Inflation threatens to increase due to Trump Tariffs
Trump wants to lower interest rates because he thinks that high rates are no longer needed to check rising prices. Moreover, inflation threatens to increase due to tariffs. Powell, however, has ignored Trump. The Fed and the president act independently so that the country’s macroeconomic policy can be insulated from political concerns.
Despite continuous pressure, Powell and the Federal Open Market Committee have prioritized inflation control and long-term economic stability. Trump expresses his frustration over Powell’s independence and the Federal Reserve’s unwillingness to cut interest rates. Trump argues that lowering interest rates is essential for economic growth and to enhance market performance.
Public Letter sent to Powell
Trump’s allies are now leveraging bureaucratic tools to increase pressure. There was a public letter sent by Russell Vought, Director of the Office of Management and Budget, to Powell asking about the legitimacy of the Federal Reserve’s headquarters renovation. Though it seemed to be a financial concern, the move is viewed as a political makeover to pressure Powell.
The approach reflects Trump’s broader view of executive power, seeking influence over traditionally independent institutions like the Fed. Trump positions himself as a pro-growth advocate. The intensified focus on Powell highlights his effort to reshape the monetary policy of the US, particularly if Trump returns to office.
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
