Trump slams Fed Chair Jerome Powell on Truth Social for refusing to cut interest rates

Trump is tearing into Jerome Powell once again, this time for what he says is complete disrespect for America’s financial strength.

On Thursday, the president posted:

“’Too Late’ DEMEANS THE GREAT CREDIT OF THE USA. We are now, again, the Number One Credit in the World! ‘Gigantic Comeback.’ The Fed Rate should be reflective of this. We should be at the top of the list!!! LOWER THE RATE!!!”

The post came shortly after Trump’s budget chief, Russell Vought, who now heads the Office of Management and Budget, sent Powell a letter calling him out for how he’s handled a huge construction project at the Fed’s headquarters.

Russell said Powell “has grossly mismanaged the Fed” and possibly misled lawmakers in Congress. The message wasn’t subtle. And it opened a new round of Trump’s long-running war with the central bank boss.

Vought says Powell’s renovation project is $700 million over budget

In the letter, Russell went after Powell for the spiraling costs of the Fed’s Washington building renovation. He said the project, which was already expensive, is now $2.5 billion—about $700 million more than its original price tag.

He called it “ostentatious” and claimed the cost per square foot has hit $1,923, a number he said is twice the usual rate for historic federal buildings. “The Palace of Versailles would have cost $3 billion in today’s dollars!” he posted on X, attaching the full letter he sent to Powell.

That letter was based on Powell’s recent June 25 testimony to the Senate Banking Committee, where he told lawmakers that the building did not include anything luxurious. Powell said there were “no VIP dining rooms, no new marble, no special elevators, no water features, no beehives, and no roof terrace gardens.” 

Russell’s letter responded directly to that testimony, saying the original design plans did call for rooftop gardens, elevators, private dining areas, and luxury finishes. He said Powell’s version of the story didn’t line up with what was actually planned.

Russell also raised legal issues. He wrote that the project may be in violation of the National Capital Planning Act, which requires the National Capital Planning Commission to approve major federal projects.

“Your testimony appears to reveal that the project is out of compliance with the approved plan with regard to major design elements,” he wrote. And if that’s true, Russell said, the Fed would be forced to halt all construction immediately and apply again for approval before continuing.

In the letter, he also demanded that Powell answer 11 questions about the project within seven business days. Trump’s administration hasn’t said whether they’ll try to remove Powell, but the pressure is mounting. In the past, Trump considered firing him and even floated replacing him publicly before his term ends next spring. Now that Trump’s back in power, the idea may not stay off the table much longer.

Trump brings up a new economic study to slam Powell over inflation

Two days before his Truth Social post about interest rates, Trump posted that a Council of Economic Advisers (CEA) study proves Powell has been wrong all along. “A new Study by the Council of Economic Advisers (CEA), led by Highly Respected Chair, Dr. Stephen Miran, has found that Tariffs have had ZERO IMPACT on Inflation,” Trump wrote.

He didn’t stop there. “In fact, the Study shows that Import Prices are actually DROPPING, just like I always said they would. The Fake News and the so-called ‘Experts’ were wrong again. Tariffs are making our Country ‘BOOM.’ Many new Factories, Jobs, and TRILLIONS OF DOLLARS in Investments are pouring into the U.S.A. Someone should show this new Study to ‘Too Late’ Jerome Powell, who has been whining like a baby about non-existent Inflation for months, and refusing to do the right thing. CUT INTEREST RATES JEROME — NOW IS THE TIME!”

There’s also a legal wall Trump may want to break through. The Supreme Court recently ruled that Fed board members are protected from being removed by the president without cause. But if Russell’s accusations stick—about mismanagement, lies to Congress, or violations of federal law—Trump may try to argue that Powell’s actions meet that threshold.

For now, Powell hasn’t replied publicly to Russell’s letter or Trump’s posts, as per usual. But the clock is ticking on those 11 questions.

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