Rates, US Economy And Tariffs: Why Trump Is Feuding With Fed Chief Jerome Powell?

Last Updated:July 25, 2025, 16:57 IST

Donald Trump escalates feud with Jerome Powell over interest rates, tariffs and spending, pushing for cuts as Fed Chair resists political pressure.

US President Donald Trump looks on as Jerome Powell, chairman of the US Federal Reserve, as he speaks at the White House in Washington, US. (Image: Reuters)

US President Donald Trump’s increasingly personal feud with Federal Reserve Chairman Jerome Powell has reached a new level of intensity with months of public criticism, insults and policy clashes over interest rates. At the heart of the conflict is Jerome Powell’s continued reluctance to cut interest rates- a position grounded in the Fed’s cautious, data-dependent approach to inflation and growth.

Donald Trump, who appointed Jerome Powell in 2017, insists that rate cuts are essential to reviving consumer savings and aligning with his broader economic agenda. But what began as a policy disagreement has now morphed into a sustained campaign of pressure and mockery, with both men clashing in public.

Early Friction: Inflation And Tariffs

The first signs of real rupture emerged in January through March when the Federal Reserve chose to hold interest rates steady despite rising political pressure. On January 29, after the Fed’s decision, Donald Trump posted on social media blaming the central bank’s attention to “DEI, gender ideology, green energy, and fake climate change" for the nation’s inflation problems. In February, the US President attempted to link rate cuts directly to his administration’s new tariff strategy, calling on the Fed to act swiftly, saying, “Let’s rock and roll, America."

Escalation: From Policy Pressure To Personal Insults

The conflict escalated sharply in April and May as Donald Trump began launching personal attacks on Jerome Powell, accusing him of political bias and economic incompetence. On April 4, Donald Trump posted in all caps, “CUT INTEREST RATES JEROME AND STOP PLAYING POLITICS," signaling the start of a more direct and aggressive campaign. By mid-April, he was questioning Jerome Powell’s job security, saying that his “termination cannot come fast enough" and calling him a “major loser." When the Fed again left interest rates unchanged on May 7, Donald Trump responded by calling Jerome Powell a “fool" who “doesn’t have a clue."

Offensive Intensifies With Replacement Talk 

The month of June saw the rhetoric reach an unprecedented level of hostility as Donald Trump called Jerome Powell “truly one of the dumbest and most destructive people in government," labeling him an “American disgrace." On June 25, while speaking at a NATO press briefing, Donald Trump said Jerome Powell had a “low IQ" and revealed that he was considering “three or four" potential replacements.

Breakdown Of Relations: Resignation Demands And A Public Confrontation

In July, the public attacks escalated further as Donald Trump called for Jerome Powell’s resignation and describing him in increasingly derisive terms. On July 8, he said, “We should get somebody in there that’s going to lower interest rates" and by July 14, he was referring to Jerome Powell as a “knucklehead" and “stupid guy".

The Rift Goes Live On Camera

The feud came to a head as Donald Trump visited the Federal Reserve in person- marking the first such visit by a sitting US President in nearly 20 years. What was intended as a tour of the Fed’s $2.7 billion renovation project turned into a televised confrontation as Donald Trump questioned the cost, suggesting that it had ballooned to $3.1 billion. Jerome Powell rejected the figure, saying that he hadn’t heard such estimates from anyone at the Fed.

Washington D.C., United States of America (USA)

News explainers Rates, US Economy And Tariffs: Why Trump Is Feuding With Fed Chief Jerome Powell?