TL;DR: President Trump criticized Federal Reserve Chair Jerome Powell for keeping interest rates too high, calling him “incompetent” and demanding urgent rate cuts. Trump also accused Powell of mismanaging a $2.5 billion Fed renovation project and suggested legal action. The Fed has so far resisted lowering rates.
🔹 What Trump Said
- Trump stated: “Powell’s termination cannot come fast enough!” and called him “too late,” “too angry,” “too stupid,” and “too political” regarding interest rate policy.
- He criticized Powell for not reducing interest rates, demanding they be cut to 1% or lower, claiming the economy needs more stimulus.
🔹 Fed Response and Rate Context
- As of September 2025, the federal funds rate is 4.25%, down from a 2024 peak of 5.50%, but still high compared to pandemic levels.
- Powell and the Fed have resisted Trump’s pressure, citing inflation risks and economic data stability.
🔹 Allegations of Mismanagement
- Trump accused Powell of overseeing a $2.5 billion renovation of the Federal Reserve building, calling it corrupt and mismanaged.
- He suggested potential legal action against Powell over the project’s cost overruns.
🔹 Political and Legal Implications
- Trump appointed Powell in 2017 but has repeatedly clashed with him since.
- Powell’s term ends in May 2026. Trump has said he would not reappoint him if re-elected.
- Removing the Fed Chair is legally difficult and could trigger constitutional challenges.
🔹 Economic and Market Reactions
- Inflation is around 2.5% annually as of August 2025.
- The Fed board shows limited internal support for cuts; two Trump-appointed members have voted for reductions.
- Markets have remained stable, with analysts emphasizing the need to preserve Fed independence.
🔹 Broader Context
- The statements were made on September 25, 2025, during the UN General Assembly week.
- Trump’s comments align with his broader economic message of low rates and growth, and reflect tensions between political leadership and central bank autonomy.