Trump hurls capitalized insults at Jerome Powell for continuing to resist cuts in interest rates
In 2025, a significant rift between President Donald Trump and Federal Reserve Chair Jerome Powell unfolded, primarily centred around Powell's reluctance to lower interest rates. Trump, who had appointed Powell in 2017, publicly criticised the Fed's high interest rate stance, aimed at controlling inflation, viewing it as necessary to stimulate the economy.
The fundamental policy disagreement was a major source of tension. Powell maintained a cautious, data-driven approach, keeping rates relatively high to manage inflation, while Trump argued for cuts to boost economic growth and savings. This disagreement, coupled with personal discord, led to a series of public confrontations.
Trump's criticism of Powell was not reserved to policy matters. He called Powell derogatory names, such as "numbskull" and "stubborn mule," and even accused him of being a "Trump Hater." The relationship between the two deteriorated to such an extent that, in 2025, Trump discussed firing Powell during a meeting with House Republicans, though later called the prospect "highly unlikely."
Another point of contention was the cost overruns in the Federal Reserve's office renovations. Trump publicly condemned these, blaming Powell personally and using this as an opportunity to mock his responsiveness. This incident occurred during a visit to the Fed's headquarters, the details of which are not specified. Trump posted his criticism on his social media platform, Truth Social.
Throughout 2025, moments such as January’s Fed rate hold and public statements criticising the Fed for focusing on non-economic issues (e.g., Diversity, Equity & Inclusion initiatives) further fuelled the ongoing dispute. The Fed, however, has not indicated any plans to lower rates. The Fed's short-term rate remains at 4.3%.
This historical context illustrates a significant breakdown in the traditionally apolitical relationship between a sitting U.S. president and the Federal Reserve Chair, underscored by conflicting views on monetary policy and personal discord amplified by public confrontations.
The disagreement over monetary policy-and-legislation between President Trump and Federal Reserve Chair Powell escalated into a political battle, as evidenced by Trump's public criticism and personal attacks on Powell. This dispute, centred on Powell's data-driven approach and Trump's push for reduced interest rates to stimulate the economy, was a prominent feature of general-news headlines in 2025.
