Trump Calls Powell ‘Terrible,’ Says He’s Surprised by Appointment He Made

President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell on Wednesday, calling him "a terrible Fed chair" and saying he was "surprised he was appointed." The remark, made during an Oval Office photo-op with Bahrain’s crown prince, ignored the fact that Trump elevated Powell to the top job in 2017 when Janet Yellen’s term expired. Trump added that he was also “surprised” President Joe Biden kept Powell on for a second term in 2021, but insisted he has no immediate plan to dismiss him. Trump’s comments deepen a long-running feud with Powell over monetary policy. According to people briefed on recent Capitol Hill meetings, the president has floated a draft letter firing Powell but has yet to act. On Wednesday he denied imminent action while still faulting the central banker for being “too late” in cutting rates and for supporting a $2.5 billion renovation of Fed headquarters, which Trump called a misuse of public funds. The Federal Reserve has held its target rate at 4.25%–4.50% since January as it weighs lingering inflation, which ticked up to 2.7% in June. Trump, who campaigned on faster growth, argues the economy can withstand lower borrowing costs, whereas Powell has signaled caution until price pressures recede. The renewed attacks raise fresh questions about the Fed’s independence as financial markets assess whether policy decisions could soon face political interference.