Donald Trump has ramped up his longstanding criticism of Federal Reserve Chair Jerome Powell — and this time, he's going full throttle. According to Trump, Powell is not only failing in leading the central bank, but he's also “devaluing America's credit” and holding back an economic boom.
🔹 Trump: We're #1 Again, But Rates Don’t Reflect That
“‘Too Late’ Powell is devaluing the GREAT CREDIT of the United States,” Trump posted on his Truth Social platform. “We’re the #1 credit power in the world again! It’s time to cut rates — we should be at the top of the list!”
His post came shortly after Russell Vought, Trump’s budget chief and head of the Office of Management and Budget, sent a scathing letter to Powell criticizing his handling of a major renovation project at the Fed’s headquarters.
🔹 Fed Building Renovation Costs $2.5 Billion: “Versailles Would Be Cheaper”
Vought claims Powell mismanaged the costly renovation of the Federal Reserve’s Washington headquarters. The project’s budget has reportedly ballooned from $1.8 billion to $2.5 billion. “This is opulence. $1,923 per square foot? Versailles would cost just a bit more!” Vought posted on X (formerly Twitter), attaching the full letter sent to Powell.
During recent Senate testimony, Powell had denied the project included any luxury features, claiming there were “no VIP dining rooms, no marble, no special elevators, no fountains, no rooftop terraces.” But Vought argues that the original plans did include precisely those things.
🔹 Trump May Attempt to Remove Powell – Legal Tensions Build
So far, the Trump administration has not confirmed whether it plans to remove Powell, but pressure is building. Trump previously considered firing the Fed chair — and now that he’s back in power, that possibility may no longer be theoretical.
Still, Trump would have to navigate a Supreme Court ruling that protects Fed board members from being removed without cause. If Vought’s accusations — including mismanagement, misleading Congress, or violating federal law — are substantiated, the White House may claim legal justification.
🔹 Trump Cites CEA Study: “Tariffs Didn’t Cause Inflation”
Trump also sharpened his rhetoric on inflation. He referred to a new study by the Council of Economic Advisers (CEA), claiming it proves Powell was wrong all along. “A new study by the CEA, led by highly respected Chairman Dr. Stephen Miran, found that tariffs had ZERO impact on inflation,” Trump posted.
And he didn’t stop there. “In fact, the study shows import prices are FALLING — exactly what I’ve always said. Fake news and so-called ‘experts’ were wrong again. Tariffs are creating a BOOM. New factories, jobs, and trillions in investments are flowing into the U.S. Someone show this study to ‘Too Late’ Jerome Powell, who’s been whining like a baby about fake inflation for months. CUT INTEREST RATES, JEROME – NOW’S THE TIME!”
🔹 Conclusion: Trump vs. Powell, a Growing Financial Battle
With key decisions from the Fed looming and increasing pressure from the White House, Jerome Powell faces a politically charged moment in his tenure. He has not yet publicly responded to Vought’s letter or Trump’s comments — but the clock is ticking on those 11 questions that could shape his future.
#TRUMP , #JeromePowell , #FederalReserve , #Inflation , #Fed
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