Trump Takes Aim at Federal Reserve Leadership Amid Rising Inflation Concerns
Former U.S. President Donald Trump has renewed his demand to replace Federal Reserve Chair Jerome Powell, citing ongoing inflation and what he calls “policy failures hurting working Americans.”
During a televised interview in Florida, Trump criticized Powell’s rate decisions and accused the Fed of “tightening into weakness.” The comments come as Trump ramps up his 2024 campaign messaging on economic leadership and monetary reform.
Trump’s criticism centered on Powell’s handling of interest rates and the central bank’s inflation response. He argued that recent rate hikes have stifled small business growth, stalled housing, and “ignored the real economy.”
“The Fed is out of touch. They’re crushing everyday Americans while protecting Wall Street,” Trump said.
Though the Federal Reserve has signaled a potential pause in rate hikes, Trump warned that the damage is already being done, particularly to middle-income families and industrial sectors.
Trump’s renewed attacks on Powell come just months before the U.S. presidential election. His team says he would seek a new Fed chair “on Day One” if re-elected.
This isn’t Trump’s first clash with Powell. He previously criticized the Fed chief during his presidency for raising rates too quickly.
Powell, originally appointed by Trump in 2018 and reappointed by Biden in 2022, has so far declined to respond to the latest remarks.
Analysts say this push could energize Trump’s economic base while reigniting debate over central bank independence.
Wall Street responded cautiously to Trump’s statement. The Dow fell 0.3% in early trading, while bond yields spiked slightly on fears of Fed policy instability.
Financial analysts warn that frequent attacks on the Fed could shake investor confidence and complicate long-term planning.
Still, some Republican lawmakers echoed Trump’s view, arguing the Fed has failed to tame inflation fast enough without triggering recession signals.
White House and Economists Defend Powell
The Biden administration defended Powell’s record. A senior White House official said the Fed chair has managed “an exceptionally difficult post-COVID economy with professionalism and restraint.”
Top economists also pushed back, saying Powell’s decisions have helped stabilize inflation, now below 3% year-over-year.
Nonetheless, Trump’s rhetoric may reopen debates over the Fed’s dual mandate and how monetary leadership should be chosen during volatile times.
In summary, Trump has revived calls to replace Fed Chair Jerome Powell, signaling a renewed focus on monetary policy as a campaign issue.
While the move may rally political support, it could also unsettle markets and test institutional independence.
Ultimately, Powell remains in office, for now. But with the 2024 election looming, the future of the Fed could be on the ballot.
