Trump blasts Powell: The ultimate showdown between presidential power and central bank independence
The former president used violent words like "idiot" and "worst" to nail the Fed chairman to the political pillar of shame, and a power struggle concerning the foundation of American finance was completely exposed.
At noon on June 19, 2025, Trump's tweet stabbed Powell like a dagger: "Mr. Too Late is the worst idiot! It makes the United States lose billions every day!" (Quote original tweet + data endorsement). What's more, he simultaneously forwarded the Fannie Mae regulator's forced palace call - asking Powell to "cut interest rates or resign", directly politicizing economic issues.
This verbal battle is far from a personal grudge, but the outbreak of a triple institutional crisis:
The meat grinder effect of high interest rates is real: Mortgage giant Fannie Mae publicly shouted that the market is on the verge of collapse - small and medium-sized enterprise loans are frozen, home buyers are squeezed out of the market, and Powell's patience to "wait for data" has become a fatal luxury;
The independence of the central bank has been dismembered by the presidential scepter: Trump used government-related agencies to pressure the Federal Reserve and trampled on the central bank's century-old tradition of independence. As he said in 2018, "Powell is my man", exposing the president's nature of viewing monetary decision-making as a toy;
Naked kidnapping of electoral politics: 2025 is exactly the key year of Trump's term, and if the economy declines, he urgently needs a "scapegoat". Using interest rate cuts to stimulate the economy in the short term is more in line with electoral interests than structural reforms.
When the president humiliates the chairman of the central bank with "idiot", it damages far more than Powell's reputation - global trust in the US financial system is collapsing. And Trump is betting on the public's fading memory of high inflation (the comment section has already appeared "Who is printing money in 2024?" question), using populist emotions to crush professional judgment.
If Powell can withstand the political pressure, Trump will inevitably escalate the public opinion suppression; if he compromises and cuts interest rates, it will prove that the central bank's independence has completely collapsed - no matter what the outcome, this declaration of war on the X platform will end at a price that will be recorded in the annals of financial history.
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