## Trump Launches Scathing Critique on Fed’s Rate Decision, Reigniting Feud with Powell
Former President Donald Trump has once again unleashed a fierce condemnation against Federal Reserve Chairman Jerome Powell, following the central bank’s recent decision to maintain its benchmark interest rates. In a fiery Truth Social post, published just a day after the Fed’s policy meeting, Trump asserted that “We absolutely should have a considerably lower rate, especially now that even this misguided individual acknowledges inflation is neither an issue nor a looming danger.”
### The Core of Trump’s Displeasure
Trump further contended that Powell’s policies were inflicting an annual financial burden of “Hundreds of Billions of Dollars” upon America through “completely gratuitous and unwarranted INTEREST EXPENSE.” He argued that the significant revenue generated by tariffs flowing into the nation should position the U.S. to enjoy the “LOWEST INTEREST RATE OF ANY COUNTRY IN THE WORLD.” Furthermore, Trump explicitly accused Powell of jeopardizing U.S. national security through his economic decisions.
## A Deepening Rift: The History of Trump-Powell Tensions
The recent outburst is merely the latest chapter in a protracted and increasingly hostile saga between the former president and the man he appointed to lead the Federal Reserve in 2017.
### From Nominator to Critic
Despite nominating Powell, Trump has consistently escalated his vocal disapprobation, persistently advocating for rate reductions as a means to invigorate the economy. Over the past year, this “pressure campaign” has intensified dramatically, characterized by public reprimands and even personal affronts directed at Powell, reflecting Trump’s profound dissatisfaction with the Fed’s monetary policy.
### An Unprecedented Pressure Campaign
What originated as a policy disagreement over interest rates has now metastasized into an all-out clash, presenting what many consider the most formidable challenge of Powell’s eight-year tenure as the nation’s chief central banker.
## New Complications: Criminal Probe Adds Fuel to the Fire
Adding a new layer of complexity to this contentious relationship, the Justice Department initiated a criminal inquiry earlier this month concerning Powell’s congressional testimony regarding the ongoing refurbishment of the Federal Reserve’s twin Washington D.C. buildings.
### Powell’s Public Acknowledgment
On January 11, Powell publicly acknowledged the investigation via a video statement, branding it “unprecedented.” He further characterized it as yet another instance of what he perceives as a sustained campaign of intimidation from Trump directed at the Federal Reserve. This public disclosure, made after extensive private discussions with his advisors, represented a notable deviation from the typically reserved demeanor of the central bank chief. Subsequently, during his first press appearance since the probe began, Powell informed reporters on Wednesday that he would refrain from commenting on any administration statements or the ongoing investigation itself.
### Broader Implications for the Fed
These escalating tensions between the former president and the nation’s central bank unfold amidst other significant developments. The Supreme Court is currently deliberating on the scope of presidential authority to dismiss a sitting Federal Reserve Board Governor, specifically Lisa Cook. Concurrently, the White House has begun hinting at potential successors for Powell, further underscoring the high-stakes environment surrounding the Fed’s leadership.
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### Summary of Main Points:
* Former President Donald Trump vehemently criticized Federal Reserve Chairman Jerome Powell and the central bank for maintaining interest rates, arguing that rates should be significantly lower to save the U.S. billions in interest and leverage tariff revenue, further claiming Powell’s actions harm national security.
* This latest confrontation is a continuation of an escalating and increasingly personal feud between Trump and Powell, despite Trump having nominated Powell in 2017.
* The Justice Department recently launched a criminal investigation into Powell regarding his congressional testimony about the Fed’s building renovations, which Powell publicly confirmed, labeling it “unprecedented” and linking it to Trump’s ongoing pressures.
* The article highlights the intense environment surrounding the Federal Reserve, noting that the Supreme Court is currently reviewing presidential authority to remove a Fed Governor, and the White House is already discussing potential successors for Powell.