Former President Donald Trump has increased attacks on Chairman Jerome Powell. He derided Powell a “fool” and referred to him as “a big, fat failure.” The former president’s remarks come in the wake of his request for a meeting with Powell at the White House, highlighting a turbulent relationship that has persisted since Trump’s presidency. This request comes after months of unprecedented attacks aimed at Powell, mostly concerning the Federal Reserve’s monetary policy decisions.
The meeting between Trump and Powell would be the pair’s first known meeting since their last tête-à-tête in 2019. The former president nominated Powell to take the helm of the U.S. central bank in 2018. Since then, Trump has been vocal about his displeasure with Powell’s moves, particularly on interest rate hikes. During a recent rally, Trump declared, “Jerome Powell’s termination cannot come fast enough,” emphasizing his dissatisfaction with the Fed’s approach to economic management.
Though Trump has often telegraphed his displeasure, Powell has kept an arm’s length distance. Indeed, he has personally publicly announced that he was never interested in an audience with a sitting U.S. president. This release is a reminder of the administration’s continued commitment to the independence of the Federal Reserve.
“I don’t think it’s up to a Fed chair to seek a meeting with the president, although maybe some have done so. I’ve never done so, and I can’t imagine myself doing that.” – Jerome Powell
Though he’s been criticized by Trump on such a consistent basis, Powell has kept quiet during the hellstorm of verbal assaults. Specifically, he always makes the point that the Federal Reserve’s decisions should be based on data – economic data. Their mandate is to accomplish both stable prices and to promote maximum employment. In a recent statement, the Fed clarified, “Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook.”
The implications of Powell’s possible firing have already sent shockwaves through the highest ranks of the administration. To their credit, they warned Trump behind closed doors that his actions would throw the financial markets into chaos. They highlighted the dangers of moving forward with such harsh cuts. Investors have expressed worries that undermining the Fed’s independence could destabilize the U.S. economy, a sentiment echoed by economists and academics alike.
As Powell’s term as head of the Federal Reserve continues through May 2026, his position remains precarious amid Trump’s ongoing criticisms. The former president changed his tune on Powell after talking it over with top aides. They cautioned him on the repercussions from firing the head of the central bank.