Donald Trump has escalated his criticism of the Federal Reserve, calling for top officials to remove Chair Jerome Powell if he fails to cut interest rates. In a series of posts on his social media platform Truth Social, the US president described Powell as a 'stubborn MORON' and urged him to 'substantially lower interest rates, NOW'.
Trump's remarks come after the Fed held rates steady for the fifth consecutive time earlier this week. He suggested that if Powell refuses to act, 'THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE'. The Fed chair does not set rates unilaterally; decisions are made by the rate-setting Federal Open Market Committee.
The president's attacks on the central bank's independence follow a lacklustre jobs report released on Friday, which showed significant deterioration in the labour market. Trump blamed Powell, whom he appointed during his first term, for damaging the US economy, while touting the benefits of his tariff strategy.
Two members of the Fed's rate-setting committee dissented from the decision to hold rates steady, publishing their reasons on Friday. Trump welcomed this, posting 'STRONG DISSENTS ON FED BOARD' and claiming 'IT WILL ONLY GET STRONGER'. However, later that day, he told Newsmax that Powell would 'most likely' stay in his position, acknowledging that removing him could 'disturb the market'.
In a separate development, Fed Governor Adriana D Kugler abruptly resigned on Friday, with her term set to expire in January. She did not provide a reason, stating she was 'honoured to have served during a critical time' and will return to Georgetown University in the autumn. Her resignation creates a vacancy for the White House to fill.
