Trump Condemns Powell as Stubborn Amid Fed Rate Standoff

Trump has escalated his public criticism of Federal Reserve Chair Jerome Powell, accusing him of “stubbornness” and urging the Fed board to assume his responsibilities should he continue to resist calls for significant rate cuts [1]. The president expressed these sentiments on Truth Social, labeling Powell a “stubborn fool” and emphasizing the need for immediate action to reduce borrowing costs [1]. Trump’s remarks reflect a broader frustration with the Fed’s decision to maintain interest rates amid pressure from his administration, which includes the imposition of high tariffs on imported goods to support domestic manufacturing [10].

The Fed’s recent July 2025 meeting highlighted the internal divisions on the board, with two members voting in favor of a rate cut, though the decision to hold rates steady was ultimately upheld [4]. Powell described the meeting as “quite good,” downplaying the dissent but acknowledging the political pressures coming from the White House [4]. Trump, however, has adopted a more aggressive tone, mocking Powell with nicknames such as “Jerome ‘Too Late’ Powell” [3], and has continued to publicly challenge the central bank’s cautious approach to monetary policy.

The president’s critique of the Fed is not new. Over the past year, he has consistently argued that Powell is too slow in adjusting interest rates, a stance that has become more intense following a July 2025 visit to the Fed’s headquarters [9]. During the visit, Trump focused on his belief that the Fed should act more aggressively to lower rates and criticized what he described as “political” decision-making by Powell [9]. Analysts stress that the Fed operates independently under its mandate to achieve maximum employment and price stability, a principle central to U.S. financial policy [1]. However, Trump has indicated his intention to select Powell’s successor in 2025, signaling a long-term strategy to align the Fed with his economic priorities.

While Trump has the authority to remove Powell before 2025, analysts warn that such a move could trigger market instability and raise concerns about the politicization of monetary policy [1]. The ongoing tension between the administration and the central bank underscores a key challenge in U.S. economic governance, particularly as the Fed evaluates the inflationary risks associated with Trump’s tariff policies [5].

Sources:

[1] IFA - US growth surges but interest rate cuts still off the table despite political pressure say strategists

(https://ifamagazine.com/us-growth-surges-but-interest-rate-cuts-still-off-the-table-despite-political-pressure-say-strategists/)

[2] Project Syndicate - The Bank of Trump

(https://www.project-syndicate.org/onpoint/the-bank-of-trump)

[3] Kiplinger - July Fed Meeting: Updates and Commentary

(https://www.kiplinger.com/newsg/live/july-fed-meeting-updates-and-commentary-2025)

[4] AOL.com - Powell downplays Fed board dissents: 'Quite a good meeting'

(https://www.aol.com/powell-downplays-fed-board-dissents-193935670.html)

[5] The - Fed Holds Rates Despite Internal Divisions and Political ...

(https://www.nytimes.com/live/2025/07/30/business/federal-reserve-interest-rates/why-the-feds-renovations-have-drawn-such-ire-from-president-trump)

[9] MSN - 5 takeaways from Trump's visit to the Federal Reserve

(https://www.msn.com/en-us/money/markets/5-takeaways-from-trump-s-visit-to-the-federal-reserve/ar-AA1Jf1wr)

[10] Yahoo - Trump formalizes high tariffs as he tries to reshape ...

(https://finance.yahoo.com/news/trump-formalizes-high-tariffs-tries-004056180.html)