President Donald Trump expressed his dissatisfaction with Federal Reserve Chair Jerome Powell during a speech at the White House on Wednesday, saying he is “not a huge fan” of Powell.
This remark was made as Trump continued his repeated criticism of Powell’s decision not to cut interest rates. Trump has long disagreed with Powell’s stance on interest rates, and his latest comments reaffirm his belief that the Fed should lower rates.
Trump was speaking to a group of business leaders when he commented. He thanked them for making investments to manufacture products in the US, but also took the opportunity to address Powell.
“Mortgage rates are down slightly, even though I have a guy in the Fed that I’m not a huge fan of. But that’s alright, these are minor details. Don’t tell him I said that, please,” Trump said.
The President then repeated his ongoing criticism of Powell’s refusal to reduce interest rates, stating, “He should reduce the interest rates. I think I understand interest a lot better than he because I’ve had to use interest rates.
We should have interest rates go down.” Trump has made it clear that he believes the Fed should take more aggressive action to lower rates to stimulate the economy.
Trump nominated Powell to serve as Fed Chair in 2017, during his first term as president. At the time of the nomination, Trump praised Powell, calling him a “wise steward of the Federal Reserve.”
However, as time passed, Trump’s opinion of Powell soured. The President has consistently called for Powell to cut interest rates, even going as far as criticizing Powell for holding back the US stock market by not doing so.
In 2019, Trump took to social media to share his frustration with Powell. On X (formerly Twitter), he wrote that Powell was holding back the US stock market by not lowering interest rates. More recently, on April 17, Trump posted on Truth Social, criticizing Powell for his stance on tariffs and interest rates.
He claimed that Powell’s policies were contributing to higher inflation and weaker economic growth, and even stated that Powell’s “termination cannot come fast enough.” Despite this, Trump later clarified that he had “no intention” of firing Powell.
Trump has repeatedly stated that he has the authority to remove Powell before the end of his term in May 2026. However, it remains unclear whether the President can legally do so.
Under the law, a President can only remove a Fed official “for cause,” such as misconduct, rather than for policy disagreements. Powell himself addressed this issue in November, stating that Trump could not fire him and that he would not resign if asked to do so.
The ongoing tension between Trump and Powell reflects deeper disagreements over economic policy.
While Trump has pushed for lower interest rates to stimulate economic growth, Powell and the Federal Reserve have maintained a more cautious approach, emphasizing the importance of controlling inflation and ensuring long-term economic stability.
As the debate over interest rates continues, it remains to be seen whether Trump’s frustration with Powell will lead to any significant changes in the Federal Reserve’s approach.
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