Trump publicly labels Fed Chair Powell an 'average intellectually challenged' individual, hinting at potential replacements for him.
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Bucking the Status Quo: Trump Takes Aim at Fed Chair Powell
In a bold move that sent ripples across the economic world, President Donald Trump ramped up his verbal assault on Fed Chairman Jerome Powell, questioning his intellect and suggesting a possible replacement is on the horizon.
In a candid press conference at the NATO summit in the Netherlands, Trump wasn't shy about expressing his dissatisfaction with Powell, "He's an average fellow, with a low IQ for what he does. I think he's a pretty dumb guy, to be honest."
Trump's criticism has been a recurring theme since the start of the year, with the President arguing that Powell's reluctance to lower interest rates is costing the federal government billions in interest.
Powell, who was nominated by Trump in 2017, is one of the few major Trump nominees to have been retained by President Joe Biden. Biden, in turn, nominated Powell for another four-year term that runs until May 2026.
Asked whether he's started the process of interviewing a replacement for Powell, Trump replied, "Yeah, I know within three or four candidates who I'm going to pick." Extending his term "pretty soon" would be fortunate, Trump added, because he thinks Powell has been a failure.
Powell, however, has maintained his stand. In testimony Tuesday, he downplayed the need for immediate interest rate cuts, citing the expectation of a surge in inflation due to Trump's tariffs. This stance has earned him the wrath of Trump and his allies.
Commerce Secretary Howard Lutnick joined the chorus of criticism, posting on X, "Jerome Powell - your job is to help Americans, not hurt them, so do your job and CUT our absurdly high interest rates at your next meeting."
Even within the Fed ranks, there's growing discontent with Powell. Virginia-born Michelle Bowman, the Vice Chair for Supervision, doubted the impact of Trump's tariffs on prices, and argued swift action was needed to lower rates to protect the labor market.
Fed Governor Christopher Waller, another Trump appointee, assumed tariffs would only lead to a one-time increase in inflation. The frisson of dissent within the Fed wasn't lost on Powell who, in a moderated discussion in Milwaukee, cautioned that tariffs could ignite inflation, potentially necessitating rate hikes.
At the Fed's recent policy meeting, interest rates were kept unchanged for the fourth consecutive time, a decision Powell defended in his testimony Wednesday, emphasizing the need to proceed with caution to avoid a long-term economic fallout.
Insight: "President Trump's push for a more compliant Fed Chair is a departure from the traditionally non-political stance of the Federal Reserve, and if successful, could signal significant changes in the nation's monetary policy."
CNN's Bryan Mena contributed to this report.
- The ongoing feud between President Trump and Fed Chair Jerome Powell over interest rates and monetary policy has extended into the realm of general news, with the President's criticism of Powell's intellect and calls for his replacement causing waves in war-and-conflicts and politics, particularly in the arena of policy-and-legislation.
- Not only is President Trump's push for a new Fed Chair raising questions about the future of the Federal Reserve's monetary policy, but it is also shedding light on the intersection of business and politics, as Trump's aggressive approach could signal a departure from the traditionally non-political stance of the Federal Reserve.
- The growing discontent within the Fed ranks, evidenced by the public criticisms of Chairman Powell from both Commerce Secretary Howard Lutnick and Fed Governor Christopher Waller, underscores the significant role of crime-and-justice in shaping monetary policy decisions, as dissent within the Fed could potentially lead to changes in interest rates and the overall economic landscape.
