President Donald Trump just dropped a bombshell in the Oval Office, aiming Federal Reserve Chair Jerome Powell with a sharp call for his resignation.
Appearing with Philippines President Ferdinand Marcos Jr., aired on Newsmax and Newsmax2’s free streaming platform, Trump unloaded his frustration over the Fed’s refusal to slash interest rates from the current 4.25% to 4.5% benchmark, threatening to oust Powell while acknowledging his term ends in May 2025.
Newsmax reported that Powell, first tapped by Trump in 2018 for the Fed Chair role and later reappointed by the previous administration in 2022, has been a recurring target of Trump’s ire since the start of this second term.
Trump’s latest critique, delivered on Tuesday, centers on the Fed’s stubborn stance on interest rates. He argues that the current high rates are choking everyday Americans, especially those dreaming of homeownership.
“In eight months, he'll be out,” Trump declared, dubbing Powell “Too Late” for missing chances to cut rates. That nickname packs a punch, but it’s hard not to wonder if the Fed’s caution is just prudence in disguise—though prudence at 4.5% feels like a luxury most can’t afford.
“He should have lowered interest rates many times,” Trump added, pointing to Europe’s frequent rate cuts as a contrast. Fair point—when other economies are easing burdens, why are we stuck paying more? It’s a question that resonates with anyone eyeing a mortgage.
Now, let’s not forget the Fed hasn’t been entirely idle. They trimmed rates by a half-point a couple of months before the last big political season, followed by quarter-point cuts in the subsequent months. Still, Trump isn’t buying that as enough.
“The only time I remember him cutting rates... just before the election to try and help,” Trump quipped, suggesting political motives behind Powell’s timing.
If true, that’s a cynical play—using monetary policy as a campaign prop is the kind of Washington game conservatives have long decried.
Powell, for his part, isn’t budging. He stated recently that the Fed plans to “wait and learn more” about how tariffs might jolt inflation before making further moves. Caution is one thing, but to many, this feels like dragging feet while families struggle.
Trump didn’t hold back on the broader economic picture either, touting record-setting strength. “Our economy is so strong now. We're blowing through everything,” he told Marcos Jr. with evident pride.
But then came the jab: “People aren't able to buy a house because this guy is a numbskull.” Ouch—that’s a harsh label, though it captures the raw frustration of seeing a booming economy undercut by unaffordable borrowing costs.
“He keeps the rates too high and is probably doing it for political reasons,” Trump speculated. If politics are indeed at play, that’s a betrayal of the Fed’s supposed independence—a principle conservatives hold dear against bureaucratic overreach.
Trump’s math drives the point home: “We should be at 1%... instead, we're paying 4%.”
He estimates that the gap costs over a trillion dollars in interest payments, a burden that could vanish with a pen stroke. That’s not just a number; it’s a barrier to the American Dream for countless families.
This clash isn’t just about Powell—it’s about what the Fed’s role should be in a thriving economy. Trump’s push for lower rates aligns with a conservative vision of unleashing growth, not stifling it with high borrowing costs that seem out of touch with people’s realities.
While Powell’s term ticking down to May 2025 offers a light at the tunnel’s end, eight months feels like forever to those priced out of homes today.