President Donald Trump has ramped up his ongoing attacks against Jerome Powell, demanding that the Federal Reserve chair lower interest rates as he faces a fresh revenge plot by the president.
In a bizarre social media post in which Trump described himself as “Mr Tariff”, the president touted the latest inflation rate, which remained relatively steady last month, to hit out at the central bank chief.
“Great (LOW!) Inflation numbers for the USA. That means that Jerome “Too Late” Powell should cut interest rates, MEANINGFULLY!!!” he said on Truth Social.
“If he doesn’t he will just continue to be, “TOO LATE!”. ALSO OUT, GREAT GROWTH NUMBERS. Thank you MISTER TARIFF! President DJT.”
The Tuesday morning rant came days after the Trump Justice Department opened a contentious criminal investigation into Powell over the Federal Reserve’s renovation of its Washington headquarters and whether Powell lied to Congress about the scope of the project.
But Powell has staunchly defended himself, issuing an extraordinary two-minute video on Sunday, branding the move as politically motivated.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” he said in a stinging rebuke.
Republicans such as Thom Tillis, Lisa Murkowski and Kevin Cramer have rushed to Powell’s defence, while Treasury Secretary Scott Bessent reportedly told Trump privately that the probe “made a mess” and could spook financial markets.
In an unusual show of international solidarity, central bankers from major economies also issued a joint statement on Tuesday backing Powell as someone who “has served with integrity, focused on his mandate and an unwavering commitment to the public interest.”
“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve. It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability,” said the statement, signed by leaders including European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey.
Powell’s term expires in May, and any successor would require Senate confirmation.
Republican opposition could complicate Trump’s long-standing desire to reshape the Federal Reserve’s leadership by installing one of his allies as the next chairman.
But Trump doubled down on Tuesday, telling reporters at the White House that Powell was “billions of dollars over budget” on the Fed’s renovations, “so he either he’s incompetent or crooked. I don’t know what he is.”
U.S. Attorney for the District of Columbia Jeannie Pirro defended the probe, which is being conducted by her office, saying it would not have happened “if they had just responded to our outreach.”
“The United States Attorney’s Office contacted the Federal Reserve on multiple occasions to discuss cost overruns and the chairman’s congressional testimony, but were ignored, necessitating the use of legal process—which is not a threat,” Pirro wrote in a post on the social platform X.
Trump has been demanding that Powell lower interest rates substantially for months - a move that the president believes will bolster his economic credentials with voters as Republicans head into the midterm elections in November.
Those credentials will come under the spotlight on Tuesday when Trump heads to the battleground state of Michigan to recalibrate his message on affordability with a speech at the Detroit Economic Club.
The trip will be Trump’s first domestic trip since capturing Venezuelan leader Nicolas Maduro, threatening to seize Greenland, and hinting at military action against Iran.
It also comes as the US Supreme Court is set to rule on whether Trump’s signature tariff policy was lawfully issued last April using emergency powers.
Trump has since taken to calling himself “Mr Tariff”, a cringey nickname unveiled earlier this month, prompting online mockery.
The White House, however, later leaned into the branding, sharing a post on X that appeared to depict Trump as a Mr. Clean–style figure.
