2025-05-01T04:08:17Z

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In a recent address to business leaders at the White House, former President Donald Trump directed a pointed critique at Federal Reserve Chair Jerome Powell, expressing his belief in his own understanding of interest rates compared to Powell's. Trump stated, "I think I understand interest a lot better than him because I've had to really use interest rates," highlighting his ongoing dissatisfaction with Powell's policies.

During his speech, Trump acknowledged the slight decline in mortgage rates, even while noting that he does not hold Powell in high regard. "Mortgage rates are actually down slightly, even though I have a guy in the Fed that I'm not a huge fan of. But that's all right, these are minor details. Don't tell him I said that, please," Trump quipped, demonstrating his characteristic blend of humor and criticism.

Trump's comments were made in the context of thanking business leaders for their investments aimed at manufacturing within the United States. However, he took the opportunity to reiterate his long-standing critique of Powells reluctance to cut interest rates, saying, "He should reduce the interest rates. We should have interest rates go down."

In a bit of historical context, it is worth noting that Trump nominated Powell for the position of Federal Reserve Chair in 2017 during his first term. Initially, Trump lauded Powell as a "wise steward of the Federal Reserve," but soon after his nomination, Trumps perspective soured as he began to express frustration over Powell's decisions, particularly regarding interest rates.

Back in April 2019, Trump took to social media platform X, formerly known as Twitter, to accuse Powell of stifling the US stock market by not cutting rates. More recently, on April 17, Trump posted on Truth Social, stating that Powell's "termination cannot come fast enough" following Powell's comments that Trumps broad tariffs could lead to increased inflation and slower economic growth.

In a scathing post, Trump remarked, "The ECB is expected to cut interest rates for the 7th time, and yet, 'Too Late' Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete 'mess!'" This comment underscores Trump's ongoing frustration with the Fed's monetary policy under Powells leadership.

Despite his harsh criticisms, Trump has publicly stated multiple times that he possesses the authority to remove Powell from his position before the end of his term in May 2026. However, there remains legal ambiguity regarding whether this can be done solely based on policy disagreements. According to regulations, a president can only dismiss a Fed official for cause, such as misconduct, rather than policy disagreements.

In November, shortly after Trumps election victory, Powell clarified to the media that he could not be terminated by Trump, asserting that it "is not permitted under the law." Powell also made it clear that he would not resign voluntarily even if Trump were to request it.

As of now, a representative from the Federal Reserve has declined to comment on Trumps latest remarks, and the White House has not responded to Business Insiders request for further clarification on the matter. This situation continues to unfold as the economic landscape remains a pivotal issue for many Americans.