President Donald Trump unleashed a fiery attack on Federal Reserve Chair Jerome Powell on Friday, calling him a “stubborn MORON” and demanding the Fed’s board take over control of the central bank if Powell refuses to cut interest rates.
“Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, NOW,” Trump posted on Truth Social. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”
The outburst followed yet another decision by the Fed to hold rates steady, despite growing fears of economic slowdown and a dismal July jobs report. The Labor Department reported just 73,000 new jobs, far below the 100,000 expected — sparking a sharp sell-off on Wall Street.
Trump has repeatedly hammered Powell in recent weeks, blaming him for keeping borrowing costs too high and worsening the economic pain. He’s now openly calling for the Fed board to sideline Powell — an extraordinary suggestion that escalates his long-running war with the central bank.
While two Fed governors did push for cuts, Powell held firm. “If we cut rates too soon, maybe we didn’t finish the job with inflation,” he said Wednesday. “If we cut too late, maybe we’re doing unnecessary damage to the labor market.”
Powell also warned that Trump’s tariffs could still fuel inflation, adding, “companies feel that they have every intention of putting this through to the consumer, but… they may not be able to in many cases.”
Despite rising pressure, Powell defended the Fed’s wait-and-see approach, saying, “We think we have a long way to go to really understand exactly how we’ll be.”
But Trump and his allies are keeping the pressure.
Treasury Secretary Scott Bessent accused the Fed of “fear-mongering” over tariffs. Commerce Secretary Howard Lutnick claimed Powell is “torturing America” by refusing to lower rates.
Powell’s term runs through May 2026. If Trump wins in November, he’ll get to install a new chair. Until then, he’s making one thing clear: he wants Powell out of the way.
