Trump Slams Powell as 'Too Late' Amid Fed Rate Hold and Political Tensions

Donald Trump renewed his public criticism of Federal Reserve Chair Jerome Powell on late July 2025, following the central bank’s decision to leave interest rates unchanged for the fifth consecutive meeting [1]. The accused Powell of poor leadership, describing him as “Too Late, and actually, Too Angry, Too Stupid, & Too Political” in a series of social media posts [2]. Trump also dubbed him “Jerome ‘Too Late’ Powell,” emphasizing his frustration with the Fed’s policy direction [3]. The remarks reflect an ongoing tension between the president and the central bank, with Trump long advocating for rate cuts to stimulate the economy and curb inflation [4].

The Fed’s decision to maintain rates comes amid heightened political scrutiny and a broader debate over the role of monetary policy in the U.S. economy. Powell, who was originally appointed under the Trump administration and later reappointed by President Joe Biden, has consistently maintained that the Fed must remain independent and focused on inflation and labor market conditions [5]. Trump’s recent comments suggest a shift from general policy criticism to direct personal attacks, signaling a potential escalation in the political discourse surrounding the Fed’s actions [2]. On July 31, Trump claimed to have heard that the Fed might consider rate cuts in September, implying that continued pressure could influence future policy decisions [3].

The president’s public statements have raised concerns about the implications for investor confidence and market stability. Analysts note that heightened political rhetoric can increase volatility in risk assets, including cryptocurrencies, which are often sensitive to macroeconomic shifts [3]. The Fed’s current cautious stance may prolong uncertainty in financial markets, particularly in sectors reliant on low borrowing costs. The debate also highlights a broader question about the appropriate level of political influence in monetary policy, a topic that has been brought to the forefront by Trump’s unrelenting public criticism [2].

Meanwhile, legal experts have clarified that Trump does not have the authority to remove Powell from his position. Federal Reserve Chairs are appointed under a framework designed to ensure the central bank’s independence, and they can only be removed under specific legal grounds [5]. Powell himself has acknowledged that a pending Supreme Court case could test this independence, challenging the precedent set by the 1935 Humphrey’s Executor ruling [5]. As Powell’s term as Fed Chair nears its end in May 2026, the political dynamics surrounding his leadership will remain a focal point of national attention [5].

The continued public clashes between Trump and Powell underscore the broader implications of political engagement in economic policy. While the Fed has historically operated with relative autonomy, the current administration’s direct and frequent criticisms threaten to blur the lines between political influence and independent monetary governance. The Fed’s next policy decisions and Powell’s potential replacement will be closely watched, as they may signal further shifts in both traditional and digital asset markets [5].

Source:

[1] https://www.foxbusiness.com/politics/trump-hits-powell-total-loser-after-fed-leaves-rates-unchanged

[2] https://thehill.com/homenews/administration/5429281-donald-trump-jerome-powell-interest-rates/

[3] https://finance.yahoo.com/news/trump-tears-into-powell-as-fed-hold-rates-but-says-i-hear-cut-coming-in-september-182124005.html

[4] https://www.investing.com/news/economy/trump-lashes-out-at-powell-our-country-is-paying-the-price-4162655

[5] https://www.usatoday.com/story/news/politics/2025/07/31/trump-fire-jerome-powell-fed/85402766007/

[6] https://www.cnn.com/business/live-news/federal-reserve-interest-rate-07-30-25