The tension between Donald Trump and Federal Reserve Chair Jerome Powell just keeps heating up.
In a recent sit-down, Trump didn’t hold back—again—about his frustrations with Powell’s handling of interest rates, making it crystal clear how deep his dissatisfaction runs.
Trump’s Blunt Assessment of Powell’s Leadership
When asked about Powell’s performance, Trump didn’t mince words.
“I think he’s doing a terrible job,” he said flatly, accusing Powell of dragging down the U.S. economy by failing to aggressively slash interest rates.
Trump even spelled out the exact change he wants: a full three-point drop.
According to Trump, the Fed’s current stance is hurting the country financially.
“We should be three points lower,” he insisted.
“We should be number one—and we’re not—and that’s because of Jerome Powell.”
The Case for Lower Interest Rates, Trump Style
Trump claimed that if Powell had acted sooner, the U.S. would be leading globally on interest rate policy.
“One year ago, this country was dead,” he argued.
“Now we’re the hottest country in the world, and everyone’s talking about it.”
The current federal funds rate sits between 4.25% and 4.5%.
If Trump had his way, it would drop dramatically to around 1.25%—a level not seen since the early days of the COVID-19 pandemic, when the Fed pushed rates down to stimulate a crashing economy.
Could a Steep Rate Cut Help or Hurt?
A sharp rate reduction might encourage home buying and push employment even higher, despite already strong job numbers.
But it’s not without risks—it could also reignite inflation, which the Fed has been trying to cool off through rate hikes since 2022.
Trump Repeats Call for Powell’s Resignation
This isn’t the first time Trump has taken a swipe at Powell.
Just last week, he called for the Fed Chair to “resign immediately.”
While Trump has previously hinted at firing Powell, that’s not a simple move—especially since Powell’s term doesn’t end until May 2026, and legal precedent suggests the president may not have the authority to remove him.
Renovation Rage Adds Fuel to the Fire
On top of rate policy, Trump’s team is also going after Powell for allegedly wasteful spending.
Russell Vought, Trump’s former budget director, released a scathing letter accusing Powell of mishandling the Fed’s multi-billion-dollar headquarters renovation in Washington, D.C.
According to Vought, the project is now a whopping $700 million over budget—ballooning to a staggering $2.5 billion.
He slammed the upgrades, claiming they include lavish features like VIP dining rooms, expensive marble finishes, and overly generous office space allocations.
Hypocrisy? Trump Touts His Own Renovation
Interestingly, Trump took the opportunity to contrast Powell’s spending with his own.
He praised a recent upgrade to the historic White House cabinet room, saying it was completed at minimal cost.
The comparison was clearly aimed at painting Powell as extravagant and irresponsible.
Accusations of Misleading Congress
Questions are now swirling about whether Powell was entirely honest during his testimony before Congress about the renovation project.
When asked about the possibility that Powell misled lawmakers, Trump doubled down: “Then he should resign immediately.”
Vought added that Powell’s statements have raised serious concerns that warrant closer examination by the Office of Management and Budget (OMB).
What Comes Next?
With Trump ramping up both political and personal criticism of Jerome Powell, the spotlight on the Fed isn’t fading anytime soon.
Whether it’s about interest rates or renovation budgets, Trump’s message is loud and clear—he wants change at the top of the Fed.
Whether he can make that happen remains to be seen.