In the post, Trump labeled Powell as ‘Too Late,’ a moniker he has frequently employed, attributing the high borrowing costs to him. “‘Too Late’ is a DISASTER for America! Interest Rates too high!” Trump declared. The caption was accompanied by an image of Powell falling into a dumpster full of trash.
This critique followed the Federal Reserve’s announcement to maintain interest rates within the 3.5% to 3.75% range. The president continues to assert that rates should be much lower, urging Powell to decrease them consistently.
The decision underscored the divisions within the central bank, as several officials voiced various opinions about future rate direction. While only one member advocated for an immediate rate cut, others disagreed with language implying potential easing in the near future.
Powell, whose term as Fed Chair concludes on May 15, has stated his intention to remain on the
Federal Reserve Board after his chairmanship. This decision comes amid an ongoing evaluation related to renovations at the Fed’s headquarters.
US Attorney for the District of Columbia Jeanine Pirro recently shifted the Justice Department’s investigation to the central bank’s inspector general. If he continues in this position, Powell would be the first sitting chair to do so since Marriner Eccles in 1948.
Tensions between Trump and Powell have escalated in recent months, especially regarding monetary policy. Since resuming office, Trump has consistently urged the Fed to lower interest rates more swiftly.
In another recent post, Trump criticized Powell’s decision to remain, suggesting he was unable to find work elsewhere. “Jerome ‘Too Late’ Powell wants to stay at the Fed because he can’t get a job anywhere else – Nobody wants him,” Trump remarked.
On the other hand, Powell has maintained a calm demeanor, stressing the independence of the central bank. After a recent Fed meeting, he confirmed his plans to continue as a governor but clarified that he would not operate as a “shadow chair.”
“The developments over the last three months have … compelled me to stay until I see them through for at least that long. I honor the position of chair. I served as a governor for six years, and I understand what that entails,” he noted.
