Donald Trump has intensified his criticism of the Federal Reserve, calling on its board to take control from chair Jerome Powell if he fails to cut interest rates. In a series of social media posts on Friday, the US president labelled Powell a “stubborn MORON” and demanded immediate rate reductions.
The attacks come days after the Fed held rates steady for the fifth consecutive time, and as the White House prepares to impose a fresh wave of tariffs. Trump broke with precedent by blaming the central bank for economic conditions, urging the board to “assume control” if Powell refuses to act.
Powell has argued that the Fed should wait to see the impact of Trump’s tariff strategy before cutting rates. However, two members of the rate-setting committee dissented from the decision to hold rates, publishing their reasons to the president’s delight.
Later on Friday, Trump told Newsmax that Powell would “most likely” remain in his position, despite saying he would remove him “in a heartbeat”. He noted that others had warned such a move could “disturb the market”.
Meanwhile, Fed board member Adriana Kugler abruptly resigned, effective next week, without providing a reason. Her departure creates a vacancy for the White House to fill.
