The post “Stubborn Moron”: Trump Blasts Powell, Urges Fed Board to Take Control appeared first on Coinpedia Fintech News
Political and market pressure is building on the Federal Reserve after it held interest rates steady for the fifth time.
President Trump once again took to social media to criticize Fed Chair Jerome Powell, urging immediate action to cut interest rates.
Trump Slams Powell Again, Calls For Board To Assume Control
In a recent Truth Social post, Trump referred to Powell as a “stubborn moron” and accused him of acting too slowly in responding to economic challenges. Trump has long been critical of Powell, whom he appointed in 2018, particularly over what he sees as overly cautious monetary policy.
“Jerome ‘Too Late’ Powell must substantially lower interest rates, NOW,” Trump wrote. He added, “If he continues to refuse, the Board should assume control and do what everyone knows has to be done!”
This isn’t the first time Trump has gone after Powell. He has been frustrated for years, saying the Fed moves too slowly and is hurting the economy by keeping rates too high. On Thursday, he slammed Powell as “too stupid” and “too political” after the interest rates were held steady.
A Test For Fed
But can President Trump fire Powell? No, but he does have some influence.
According to Grok, an AI chatbot by xAI, the Fed’s Board of Governors can override Chair Powell on interest rate decisions with a majority vote during FOMC meetings.
Legally, the President cannot directly fire the Fed Chair but by appointing new governors with Senate approval, the White House could shift the balance over time. While Trump can’t remove Powell, he can reshape the Fed’s leadership and apply public pressure, which seems to be growing.
His suggestion that the Board should take control challenges the traditional independence of the central bank. It’s unlikely to lead to immediate action but may still rattle the markets.
Calls Grow for Fed to Cut Rates Soon
Anthony Pompliano called the Fed’s latest move “a big mistake”. With the economy already booming, 3% Q2 GDP growth, high rates are holding back even greater progress.
He argues that lower interest rates are ultimately good for all Americans and predicts we could see rate cuts before the end of the year.
Deputy Treasury Secretary Michael Faulkender also argues there is no good reason for interest rates to remain high, as even Fed officials admit there is room to cut.
The crypto market recently lost momentum as Bitcoin dropped 3% to just under $115K and Ethereum fell nearly 6%. Sentiment weakened after new U.S. tariffs boosted the dollar and inflation fears.
With inflation at 2.8%, hopes for a September Fed rate cut are fading, and that may not be great for crypto, which tends to do better with lower interest rates.