President Donald Trump went on a fiery rampage Wednesday, ripping into Federal Reserve Chair Jerome Powell for what he described as a catastrophic failure in managing inflation and botching bank regulation.
The brutal attack came just two hours after the Fed announced its decision to leave interest rates unchanged, despite Trump’s very public demand for immediate cuts. But the Fed ignored him. Instead, Powell held steady, saying there was no need to rush a change in rates.
Trump slams Powell’s “terrible job” and promises to cut regulations
Posting on Truth Social on Jan. 29, Trump said, “Jay Powell and the Fed failed to stop the problem they created with inflation. I will do it by unleashing American energy production, slashing regulation, rebalancing international trade, and reigniting American manufacturing.”
Trump blamed Powell for driving the U.S. into “the worst inflation in the history of our country” and claimed the Fed wasted time on “DEI, gender ideology, green energy, and fake climate change.”
The president’s anger wasn’t just about inflation. He also tore into Powell’s oversight of bank regulations, which he said has been disastrous, vowing that the Treasury Department under newly confirmed Secretary Scott Bessent would clean up the mess by slashing red tape and expanding lending to businesses and everyday Americans.
At a press conference following the rate decision, Powell was bombarded with questions about Trump’s criticisms. His response was an ice cold. “No,” Powell said when asked if he had spoken to Trump. He made it clear that he had no plans to engage with Trump’s attacks, calling it “inappropriate” to comment on the president’s statements.
But Trump’s beef with Powell isn’t new. Trump picked him as Fed chair back in 2018, but things quickly soured when Powell resisted the president’s push for lower rates. During his campaign in 2024, Trump said, “I will not reappoint him when his term ends in 2026.”
But today Powell told reporters the economy is “in a good place” and insisted that holding rates steady is the right move to maintain balance. Powell’s message was simple: slow and steady wins the race. But Trump isn’t interested in waiting.
At the heart of Trump’s criticism is a bigger question: should the president have more say in setting interest rates? This guy certainly thinks so.
In September 2024, he said, “I think I know interest rates much better than they do, and I think I know them certainly much better than the one who’s primarily in charge of making that decision.”
