WASHINGTON — President Donald Trump last week called for the Federal Reserve’s board of governors to usurp the power of Fed Chair Jerome Powell, part of the president’s ongoing criticism of Powell for not reducing interest rates.
On his Truth Social platform, Trump called Powell “stubborn” after the Fed adjourned its July meeting with no reduction in rates.
If Powell doesn’t “substantially” lower rates, Trump said, “THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”
Saying there is no inflation, Trump said he wants to see the Fed cut its benchmark rate by as much as three percentage points from its current benchmark of 4.33%.
Trump has also called for Powell to be fired over cost overruns in a renovation of the Federal Reserve’s buildings.
Powell’s term as chair ends in May 2026. He was appointed to the position by Trump during his first administration.
