In a bold and fiery statement, former President Donald Trump has demanded that Federal Reserve Chair Jerome Powell resign right away, calling his leadership “terrible” and blaming him for high interest rates hurting the U.S. economy. Trump also pushed hard for urgent rate cuts to boost growth.
Speaking at a recent event, Trump did not hold back his frustration. He said Powell’s actions are making it harder for everyday Americans to afford homes, run businesses, or pay off debt. Trump even suggested that if Powell doesn’t step down, the economy could suffer even more in the coming months.
This is not the first time Trump has criticized the Fed, but the tone and urgency of this latest attack have stirred up headlines and debates in financial and political circles.
Why Is Trump Angry at Powell?
According to Trump, the Federal Reserve’s interest rate policies are too aggressive. He believes the high rates are slowing down economic recovery and pushing up costs for American families.
“Powell has been a disaster,” Trump said. “He should resign immediately and let someone else fix this mess.”
The Federal Reserve, led by Powell, has been raising interest rates in recent years to fight inflation. But Trump argues that these increases are doing more harm than good, especially with the 2024 election approaching.
Trump wants the Fed to cut rates fast, which he says would help stimulate the economy, lower mortgage payments, and make borrowing cheaper for small businesses.
What Does the Fed Say?
The Federal Reserve has not responded directly to Trump’s comments. However, the central bank has explained many times that its rate hikes are meant to bring inflation under control, which spiked sharply after the pandemic.
Experts say the Fed’s job is to keep inflation low and stable — and not to act based on political pressure. Still, Trump’s loud and public attacks are likely to increase pressure on Powell, especially if economic worries grow.
Reactions From Experts and Politicians
Some economists agree with Trump that interest rates may be too high for too long. Others warn that cutting rates too quickly could cause inflation to return — making things worse in the long run.
Meanwhile, Democrats have mostly stayed silent on Trump’s demand but are watching closely. Powell, a Republican originally nominated by Trump himself in 2017, has tried to stay neutral and focused on economic data.
Financial markets also reacted slightly to the comments, with some investors wondering if Trump’s words could influence future Fed decisions — especially if he wins re-election in 2024.
What Could Happen Next?
For now, Powell remains in charge, and no signs suggest he plans to resign. But Trump’s demand has added fresh heat to the ongoing debate about the future of interest rates in the U.S.
If the economy slows further, the Fed may consider rate cuts — though likely not because of political pressure. Still, Trump’s push for change has brought the Fed back into the spotlight once again.
