Vice President J.D. Vance launched a sharp attack against Federal Reserve Chair Jerome Powell, accusing him of “sleeping at the wheel” while the U.S. economy continues to struggle with high interest rates despite slowing inflation. “The Fed has totally fallen asleep,” Vance said, adding that President Trump is right when he says it's “TOO LATE” – both in responding to past inflation under Biden and in cutting rates now.


💥 White House Tightens Pressure – Powell’s Position on Shaky Ground

The Trump administration has been increasingly vocal about seeing Powell’s refusal to cut rates as a direct threat to economic growth. Vance’s criticism followed the latest inflation report from the Bureau of Labor Statistics, which showed prices barely moved in June — both overall and core inflation rose by just 0.1%, with year-over-year rates at 2.4% and 2.8%.

While this is slightly above the Fed’s 2% target, Vance and Trump argue there’s no excuse to keep rates this high — especially now that tariffs haven’t shown any major inflationary impact. Vance called the Fed’s current stance “monetary negligence.”


🏛️ $2.5 Billion Fed Renovation Becomes a New Reason for Dismissal

Inside the White House, serious talks are underway about potentially removing Powell before his term ends. National Economic Council Director Kevin Hassett stated that “Trump doesn’t want to fire Powell,” but admitted that the administration is reviewing whether it has the authority to do so. “But if there’s a reason, then yes,” Hassett said.

That reason may already be on the table. A $2.5 billion renovation of the Fed’s headquarters — already $700 million over budget — has drawn harsh criticism. Though not funded by taxpayers (the Fed uses its own revenue from interest and bank fees), Office of Management and Budget Director Russell Vought recently slammed the project as “textbook bad leadership.”


📄 A List of Questions and the Fed’s Quiet Response

Vought sent Powell a list of questions demanding detailed answers. According to Hassett, the administration’s next steps will largely depend on Powell’s response. “Whether the president decides to act will depend heavily on the answers the Fed gives to Russell’s inquiry,” Hassett said.

In response, the Federal Reserve quietly added a new FAQ section to its website, directly addressing some of Vought’s concerns. One statement emphasized: “No new VIP dining rooms are being built as part of this project” — clearly responding to specific fears about wasteful spending.


🧩 Trump Eyeing Replacements – But Who Will It Be?

Though Trump said Friday he is not yet planning to remove Powell, he admitted he already has potential replacements in mind. Powell’s term ends in May 2026, but early dismissal remains a possibility if conditions don’t improve. Names being considered include Kevin Hassett himself, former Fed Governor Kevin Warsh, and Treasury Secretary Scott Bessent.

Meanwhile, J.D. Vance keeps hammering the same message: “Cut rates now — or step aside.”



#Powell , #FederalReserve , #Fed , #Inflation , #USPolitics

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