President Donald Trump on Monday continued his extended attack against Federal Reserve Chair Jerome Powell and the central bank’s Board of Governors, calling for ultra-low rates in an intensifying campaign demanding interest rate cuts.
Trump on his social media platform wrote that the Fed’s board “should be ashamed of themselves for allowing this to happen to the United States.” However, officials who sit on the Fed’s board aren’t the only ones who vote on policy moves; that also includes five other regional Fed bank presidents. It’s unclear if Trump meant to attack just the board or all of the Fed officials with voting power.
He posted a chart ranking many of the world’s central banks by the level of their key interest rate, claiming the US has one of the highest. The chart included a note in Trump’s handwriting that criticized Powell directly, saying the Fed chair has “cost the USA a fortune” and that he continues “to do so.”
White House press secretary Karoline Leavitt said in a news conference Monday that Trump sent the chart to the Fed.
“The Board just sits there and watches, so they are equally to blame. We should be paying 1% Interest, or better!” Trump said in his social media post.
For months, Trump has relentlessly slammed Powell, describing him as a “fool,” a “numbskull” and a “stupid person.” Trump’s disdain for Powell, whom he himself appointed in 2018, stretches back to his first term as president — all centered around the Fed not lowering borrowing costs to Trump’s liking.
Trump has said the federal government is stuck paying massive interest rate payments on its debt because the Fed hasn’t lowered rates. Leavitt said that “American people want to borrow money cheaply, and they should be able to do that, but unfortunately, we have interest rates that are still too high.”
While some central banks, such as the European Central Bank and the Bank of Mexico, have lowered their benchmark lending rate a few times this year, the Fed has not. One big reason for that is the major policy shifts since Trump took office. Officials have said they want to see how those changes affect the economy first before considering further rate cuts.
Powell for his part has avoided responding to Trump’s harsh criticism, noting that the Fed is only focused on successfully taming inflation and preserving the labor market’s health. Central bankers don’t consider the government’s finances when determining policy moves.
The Fed leader told Senate lawmakers during a June 24 hearing that “we don’t take into consideration political factors” when setting rates.
Powell’s term as chair ends in May 2026, but Trump has said he will announce his pick for the next Fed leader imminently.
Presidents typically wait until the final few months of the incumbent Fed chair’s term to announce their nominee, so if Trump proceeds with naming his pick as early as this summer, it would be an unprecedented development in the Fed’s 111-year history.
Whomever Trump names would effectively be acting as America’s “shadow” Fed chair. And if this person proceeds to challenge the views of the current Fed chief, that could confuse financial markets, weaken the dollar and push up long-term interest rates, according to experts.
There are already a handful of contenders for the top job at the Fed: Treasury Secretary Scott Bessent; Kevin Warsh, a former Fed governor; Christopher Waller, a current Fed governor; Kevin Hassett, the director of the White House’s National Economic Council; and David Malpass, whom Trump in his first term nominated to helm the World Bank.
In a Fox Business interview that aired Sunday, Trump said “we’re going to get somebody into the Fed who’s going to be able to lower (interest rates.)”
When asked on his thoughts about Warsh as Fed chair, Trump said: “Kevin is very talented, but I don’t know if it’s going to be him. But he’s a very talented guy.”
“He wouldn’t be doing what Powell is,” Trump said.
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