Charles EstherTrump Ramps Up Criticism of Powell
Federal Reserve Chair Jerome Powell has come under sharp criticism from former President Donald Trump over the Fed’s approach to interest rates and its handling of the economic outlook.
Trump recently lashed out, saying Powell’s “termination cannot come fast enough,” blaming the chair for refusing to lower interest rates amid inflation concerns and economic volatility.
Senator Kennedy Pushes Back
Despite Trump’s heated remarks, Republican Senator John Kennedy of Louisiana publicly expressed confidence in Powell’s leadership.
In an appearance on NBC’s “Meet the Press,” Kennedy stated, “I don’t think the president, any president, has the right to remove the Federal Reserve chairman.”
He emphasized the importance of the Fed’s independence, calling for cooler heads to prevail: “They should sit down, have a hug and a cup of hot cocoa, and work it out.”
Powell Stands His Ground
Jerome Powell, who was first appointed to the Fed Board in 2011 by President Barack Obama and later nominated as Chair by Trump in 2018, has stated that he would not resign if asked by the president.
Powell’s current term extends through May 2026.
He has consistently signaled a cautious approach, stating that the Fed is prepared to “wait for greater clarity” before adjusting interest rates.
Policy Pressure from the White House
The tension between Trump and the Fed Chair is rooted in Trump’s desire to lower interest rates in an effort to stimulate the economy.
But Powell, citing concerns over inflation and global uncertainty, has maintained a more conservative stance.
In a recent speech in Chicago, Powell acknowledged that Trump’s tariffs were “larger than anticipated” and could potentially lead to economic headwinds.
Kennedy Praises Powell’s Resolve
Despite the political pressure, Sen. Kennedy expressed admiration for Powell’s dedication.
“My experience with Jay Powell is that he’s got tiger blood,” Kennedy said.
“He’s going to do what he thinks is right and not go down in history as the Fed chair who let inflation run wild.”
Broader Economic Concerns
Trump’s ongoing tariff strategy — which has included rapid changes targeting nations like Canada, Mexico, and China — has added to market instability.
Stock and bond markets have seen increased volatility, and public support for Trump’s economic management has waned in recent weeks.
While Trump continues to argue that tariffs will boost American manufacturing and reduce trade deficits, the long-term effects remain uncertain.
Looking Ahead
With Powell secure in his position and backed by key lawmakers, the Fed appears poised to continue operating independently, regardless of external political pressure.
As economic challenges grow more complex, the standoff between Trump and Powell could shape the future direction of U.S. monetary policy and investor confidence.
