>> Continued From the Previous Page <<
Rates frozen as inflation cools
Trump argued that Powell’s hesitation makes no sense given current economic conditions. Inflation has eased, markets are rising, and consumer confidence is improving under Trump-backed policies.
“When the market goes up, they should lower rates,” Trump explained. “They kill every rally.”
To Trump supporters, the logic is straightforward. Strong economic data should translate into lower borrowing costs. Instead, mortgage rates remain elevated, car loans stay expensive, and credit card interest continues to squeeze working families.
While the Federal Reserve cut rates three times in late 2025, Powell then abruptly halted further reductions. Critics say that decision has stalled momentum just as the economy was gaining steam.
Renovation scandal puts Powell in the spotlight
Behind the scenes, Powell is also facing growing scrutiny over a massive renovation project at the Federal Reserve’s headquarters in Washington.
The project was originally estimated at $1.9 billion. Costs have now ballooned to roughly $2.5 billion with no clear end in sight.
Florida Representative Anna Paulina Luna has referred Powell to the Justice Department, alleging he misled lawmakers about the scope and cost of the project.
“I laid out, in detail, how Jerome Powell lied under oath to Congress and misrepresented facts in official communications to senior administration officials,” Luna said.
That referral has triggered what Powell himself has described as a criminal investigation. In response, Powell released a video statement claiming the scrutiny amounts to political intimidation tied to Trump’s influence.
Playing the victim card
Powell insists the investigation is about protecting the Federal Reserve’s independence. Critics counter that honesty should be the best defense.
If Powell told the truth, they argue, there would be nothing to fear. Instead, he has portrayed himself as a victim while avoiding clear answers about how a government construction project spiraled hundreds of millions of dollars over budget.
For Trump allies, the issue is accountability. No bureaucrat, they argue, should be immune from congressional oversight.
The cost to everyday Americans
While Powell defends himself in Washington, American families are paying the price.
High mortgage rates are keeping first time buyers locked out of the housing market. Credit card interest rates are punishing middle class households. Auto loans are pricing families out of dependable vehicles. Small businesses struggle to secure affordable financing to expand and hire.
Trump supporters say these burdens are unnecessary and directly tied to Powell’s refusal to align interest rate policy with economic reality.
Politics, power, and what comes next
Some Republicans have expressed concern about escalating tensions. Senator John Kennedy warned publicly about a potential clash between the White House and the Federal Reserve.
Others dismiss that framing entirely. They argue this is not about personality conflicts but about whether a Fed chairman who mismanaged a multibillion dollar renovation should be allowed to undermine a pro growth economic agenda.
Powell’s term as chair expires in May, though he can remain on the Board of Governors until 2028. Without the chairmanship, however, his influence would be significantly reduced.
Media commentators have rushed to compare the situation to the 1970s, citing Richard Nixon and former Fed Chairman Arthur Burns. Trump allies reject the comparison, pointing instead to energy shortages, reckless spending, and policy failures as the true drivers of that era’s inflation.
Trump’s message in Detroit was clear. He believes the economy is ready to surge, and he sees Jerome Powell as the last major obstacle.
By calling Powell a “jerk” and a “real stiff,” Trump signaled that the days of quiet disagreement are over. With only months left in Powell’s chairmanship, Trump is making sure voters know exactly who he believes is standing in the way of the next American economic boom.
