“Fed Chair Powell’s Time Is Up, We Don’t Need a Fool Like Him Anymore” – President Donald Trump

“Fed Chair Powell’s Time Is Up, We Don’t Need a Fool Like Him Anymore” – President Donald Trump
[Washington, July 23, 2025] — President Donald Trump on Tuesday referred to Federal Reserve Chairman Jerome Powell as a “fool,” saying, “His time is up. We don’t need a fool like him.”

Speaking during a meeting at the White House with Philippine President Ferdinand Marcos Jr., Trump said, “He’s done a terrible job. But he’ll be gone very soon. Just eight more months and he’s out.”

Confusion Over Term Expiry

Powell’s term is officially set to end on May 15, 2026, but Trump’s reference to “just eight more months” would place the end around March 2026. The administration has not offered any clarification regarding this discrepancy.

Chairman Powell has previously made it clear that he will not resign before the end of his term.

Longstanding Frustration Over Interest Rates

Trump has been blaming Powell for months for not lowering interest rates. While he has repeatedly expressed a desire to fire Powell, he has also acknowledged that doing so would be “impossible.”

Currently, the Federal Reserve’s policy interest rate stands between 4.25% and 4.50%. The rate is expected to remain unchanged at next week’s FOMC meeting, as inflation and labor market dynamics are being assessed.

Trump remarked, “Our economy is very strong right now. We’re breaking records. But people can’t afford to buy homes because this guy (Powell) is a fool. He’s keeping rates too high—probably for political reasons.”

White House Pressure and Spending Controversy

The Trump administration has recently accused the Federal Reserve of excessive spending on two government building renovation projects. The White House claims the Fed is “violating planning protocols” and engaging in “unnecessary extravagance.”

Treasury Secretary Scott Bassett said, “The Fed is straying from its core mission. Excessive spending on new construction and renovations is unacceptable.” He called for a “major internal investigation.”

Economists Warn: Threat to Central Bank Independence

Economists have warned that political pressure on the central bank could be dangerous for the economy. Ian Hatzius of Goldman Sachs said, “Markets are beginning to believe that the Fed’s independence is under threat.”

He added, “If long-term inflation expectations rise, the Fed may be forced to adopt even more restrictive policies.”

An analysis from Barclays Bank stated, “The political pressure being exerted by the administration on the Fed could lead to future interest rate hikes.”