Tensions between President Donald Trump and Federal Reserve Chairman Jerome Powell have reached new heights as the Fed continues to hold interest rates at near two-decade highs, despite inflation falling to a four-year low. Trump, backed by key allies in Congress and on Wall Street, has intensified public pressure on Powell, calling for his resignation and accusing the Fed chair of playing partisan politics.
Senator Bernie Moreno (R-OH) noted the contrast in Powell’s behavior across administrations, remarking that while Powell remained largely silent during the inflation surge and economic fallout of the Biden years, he has now become vocal—particularly in criticizing Trump-era tariffs and resisting rate cuts. “He found his voice when it suited him politically,” Moreno said, joining Trump in demanding Powell’s departure.
Jerome Powell is sabotaging working Americans and costing our country hundreds of billions of dollars with his political games.
For the sake of the institution, resign. https://t.co/H3DQ6bIRAF
— Bernie Moreno (@berniemoreno) July 13, 2025
Fueling the controversy further are new allegations by Federal Housing Finance Administration (FHFA) Director Bill Pulte, who has accused Powell of misleading Congress about the $2.5 billion renovation of the Federal Reserve’s headquarters. Pulte is calling for a full investigation into what he describes as “deceptive testimony” and “political bias” by Powell, citing cost overruns and a lack of transparency.
President Trump, fresh off his appearance at the FIFA Club World Cup in New Jersey, resumed his public campaign against Powell during remarks at Joint Base Andrews. “Jerome Powell has been very bad for our country,” Trump said, describing the Fed’s inaction on rate cuts as a burden on growth. “We should have the lowest interest rate on earth — and we don’t.”
Trump also criticized the Fed’s credibility, arguing that despite employing thousands of economists, the institution repeatedly misjudged inflation and growth dynamics. “I don’t need 5,000 people telling me what to say once a month,” he said. “They got it wrong. I call him ‘Too Late’ — because he’s always too late.”
.@POTUS: “Jerome Powell’s been very bad for our country. We should have the lowest interest rate on earth, and we don’t… and yet, he’s spending $2.5 billion rebuilding the Fed — the Federal Reserve building… I call him ‘Too Late’ — he’s always too late.” pic.twitter.com/fOLuT40LO6
— Rapid Response 47 (@RapidResponse47) July 14, 2025
Critics argue that Powell’s decision to cut interest rates by 50 basis points in September 2024—just before the general election—undermines the Fed’s claim of political neutrality. “He cut rates when inflation was higher than it is now,” said Club for Growth founder Stephen Moore. “Now that inflation is lower, he refuses to act. That’s not economics—that’s politics.”
James Fishback, CEO of Azoria Investments, echoed this sentiment, claiming Powell is “not fighting inflation—he’s fighting Trump.” He pointed to data showing that every percentage point of interest equates to roughly $360 billion in cost to the government. “We could be saving nearly a trillion dollars,” Fishback stated, “if Powell simply acted in the nation’s best interest.”
Trump is right about Powell.
Inflation just hit a 4-year low—and it’s heading even lower. So why is Jerome Powell (Too Late!) keeping interest rates near 20-year highs?
He claims he can’t cut now, but he had no issue cutting rates by 50 points right before the election when… https://t.co/TMMUdNxJaM pic.twitter.com/B5vglPQptV
— James Fishback (@j_fishback) July 12, 2025
Despite growing speculation, Powell has given no public indication that he intends to resign. However, the mounting pressure from the executive branch, GOP lawmakers, and financial leaders has placed the Fed under the kind of political spotlight it rarely faces.
