Donald Trump vs Jerome Powell: US President urges Fed board to overrule Powell on rates; calls him ‘stubborn’ as dissent grows

US President Donald Trump on Friday called on the Federal Reserve’s board of governors to wrest control of monetary policy from Chair Jerome Powell, escalating his public campaign for deep interest rate cuts and directly attacking Powell as “stubborn.”In a post on his Truth Social platform, Trump said, “If Powell doesn’t ‘substantially’ lower rates, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”The US president, who has nominated several members to the Fed board, has repeatedly criticised Powell for maintaining the central bank’s benchmark rate — currently averaging 4.33% — even as Trump pushes for a 3 percentage point cut to stimulate growth and lower government debt costs. Powell has argued that the Fed must first assess the inflationary impact of Trump’s broad tariff regime before adjusting policy, AP reported.Two Fed governors — Christopher Waller and Michelle Bowman — both dissented at the Fed’s meeting on Wednesday, issuing statements that suggested a more dovish stance. They said the recent inflation uptick was likely a one-time effect and the job market showed signs of softening. Trump seized on these internal disagreements.“STRONG DISSENTS ON FED BOARD,” Trump posted. “IT WILL ONLY GET STRONGER!”Despite claiming that the US economy is booming, Trump has repeatedly insisted that inflation is virtually nonexistent — even though the Fed’s preferred inflation gauge is running at an annualised rate of 2.6%, slightly above its 2% target.Friday’s jobs report added fuel to Trump’s demands, showing only 73,000 jobs were created in July. Revisions lowered June and May figures to 19,000 and 14,000 respectively, indicating a sharper-than-expected slowdown.Trump contends aggressive rate cuts would boost growth and help homebuyers and the federal budget. But some economists warn that such steep cuts could release more liquidity than the economy can absorb, risking higher inflation.The dispute has also turned legal. A May ruling by the US Supreme Court indicated that Powell cannot be removed solely for policy differences. However, the Trump administration is reportedly exploring whether Powell can be dismissed “for cause,” citing cost overruns in the Fed’s ongoing $2.5 billion renovation project.Powell’s current term as Fed Chair ends in May 2026. Trump would then have the authority to nominate a successor, subject to Senate confirmation.