President Trump continues to push for steep interest rate cuts, but Federal Reserve Chair Jerome Powell is making it clear — he’s not going anywhere and won’t be pressured into action.
Key Facts:
- President Trump has repeatedly pressured Fed Chair Jerome Powell to cut interest rates, even threatening to fire him.
- Powell publicly and privately affirmed he will serve out his full term ending in 2022 regardless of pressure.
- Trump has announced a wave of tariffs on imports from over 20 countries, including a 30% tariff on EU and Mexico goods starting August 1.
- Powell maintains a cautious policy with interest rates held between 4.25% and 4.5% amid trade uncertainty.
- Trump also criticized $2.5 billion in Fed headquarters renovation costs, but Powell clarified no taxpayer funds are being used.
The Rest of The Story:
Tensions between President Trump and Fed Chair Jerome Powell have intensified as Trump demands aggressive rate cuts.
In response, Powell remains firm in his independence, showing no signs of backing down.
During a 2019 congressional hearing, Powell plainly told Rep. Maxine Waters he would not step down if asked by the president.
“The law clearly gives me a four-year term, and I fully intend to serve it,” Powell said.
In private remarks quoted by WSJ correspondent Nick Timiraos, Powell doubled down: “You will not see me getting in the lifeboat.”
Trump argues rate cuts would save the U.S. “hundreds of billions of dollars” and has ramped up tariffs on dozens of countries.
These include 30% tariffs on EU and Mexico goods, and other steep levies on Brazil, Canada, and more—set to take effect August 1.
Trump also took issue with the $2.5 billion Fed building renovation, but Powell stated the overruns stem from inflation and aging infrastructure—not luxury spending.
“There’s no new marble,” he told senators.
Jerome Powell has come under fire from the White House over the Fed’s $2.5 billion building renovation.@pulte is calling for an audit and says there may be enough to terminate him for cause:
“Who spends $2.5 billion on a renovation? I couldn’t even think about how to do that.” pic.twitter.com/8PJLSjXPXk
— Daniel Baldwin (@baldwin_daniel_) July 15, 2025
Commentary:
Jerome Powell has made it perfectly clear: he’s staying the course until the end of his term. No amount of presidential pressure, public mockery, or private intimidation is going to move him.
This leaves Trump in a tough spot. He’s been relentless in pushing for lower interest rates, which would help boost the economy, ease consumer debt, and reduce the cost of borrowing for everyone—including the federal government.
But Powell simply isn’t yielding. From a business perspective, Powell’s inaction ties up growth. Entrepreneurs face tighter lending, the housing market remains out of reach for many, and credit-dependent sectors stay under pressure.
Yet Powell’s refusal to act, citing inflation concerns and caution over Trump’s trade war, keeps the Fed in gridlock.
Ultimately, Trump is used to getting results through pressure. But Powell isn’t budging. He’s not up for reelection, doesn’t answer to voters, and believes the law backs his position.
The Bottom Line:
Despite escalating pressure from President Trump, Jerome Powell is standing firm on interest rates and his role as Fed Chair.
His legal authority and unwavering commitment block Trump’s economic push—for now.
With no immediate leverage over Powell, Trump will have to outlast him or wait until 2026 for real change at the Federal Reserve, or test the legal waters and fire him.
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