Donald Trump, former President of the United States, talking economic policy on his upcoming trip to Detroit, MI. He will continue his personal crusade against Federal Reserve Chair Jerome Powell. On July 24 of that year, then President Trump gave Powell a list of demands. Specifically, it detailed the $478 million in cost overruns associated with the Federal Reserve’s $2.5 billion headquarters renovation project. This very public act reinforces the animus that still exists between Trump and Powell. These conflicts have dragged on for years, especially over monetary policy and interest rates.
Trump’s criticisms of Powell have intensified as he linked the Fed chair’s decisions to the current inflation rate and other economic challenges facing the nation. He has consistently blamed his political rival, President Joe Biden, along with rising interest rates, for the economic woes affecting American consumers. Trump’s economic narrative has been shaped by a desire to highlight perceived failures of his predecessors while emphasizing his own administration’s achievements.
Prior to leaving for Michigan, Trump took a few questions from reporters on the South Lawn of the White House. It was here that he repeated his rosy vision for the economy and made it very clear how peeved he is with Powell. He hopped on his helicopter and buzzed off toward Detroit Metropolitan Wayne County Airport. On arrival, President Biden is expected to tour a Ford automotive manufacturing plant. Later in the day, Trump will make his way to the Detroit Economic Club to deliver remarks on producing economic growth and beating inflation.
His visit couldn’t be more opportune. Consumer prices rose 2.7% from a year ago, matching the annual rate measured in November. Such statistics provide Trump with an opportunity to discuss the state of the economy while framing it through his lens of responsibility and critique.
Trump’s pattern of threats and personal attacks against Powell is pretty well-documented too. He’s labeled Powell as “crooked” and “incompetent.” He further shredded his performance by renaming him “Mr. Too Late” and a “numbskull.” These comments have sparked new questions about the true intentions of Trump’s ongoing campaign against the chair of the Federal Reserve.
In response to this intense scrutiny, Powell has publicly condemned the investigation into the Fed as “unprecedented.” He posited that it is a product of Trump’s annoyance with the Fed’s refusal to lower interest rates faster and deeper. The U.S. Department of Justice recently joined this investigation. They have allegedly served subpoenas on the Federal Reserve and are even considering seeking a felony criminal indictment based on Powell’s testimony to a Senate Banking Committee about the $207 million dollar renovation of 6 Federal Reserve buildings.
And with that, Trump is preparing for his own speech just a mile down the road in Detroit. He’ll undoubtedly point to the news from last week that the U.S. economy grew at an annualized rate of 4.3% over the last three months ending in September, blowing past expectations and representing the strongest growth in two years. In light of these developments, Trump’s press secretary, Karoline Leavitt, affirmed that Trump firmly believes Powell is failing in his role.
The former President has highlighted crime reduction in various cities as part of his broader public safety efforts, seeking to draw connections between his policies and improved community conditions. Trump sets these background narratives against his Powell-bashing and his demonization of Biden. His other obvious goal is to rally his base to his side and make himself a more competitive candidate in the next election cycle.