Trump Rips Jerome Powell Over Rates, But Supreme Court Shields Fed From Firing

President Donald Trump escalated his criticism of Jerome Powell on Thursday, blaming the Federal Reserve chief's rate stance for higher U.S. debt costs.

According to USA Today, Trump said higher interest payments were the result of "one numbskull," a reference to Powell, and accused him of ignoring political realities.

Trump has pushed Powell for months to lower rates. "We can't get this guy to do it,” he said. “And the fake news is saying ‘Oh if you fired him it would be so bad.’ I don't know why it would be so bad, but I'm not going to fire him."

At a White House meeting last month, the Fed chair told the president he would not allow politics to influence monetary policy, per statements from the Fed and the White House.

The central bank left interest rates unchanged at its May meeting, citing uncertainty, and has not lowered rates in three consecutive meetings. Its next decision is scheduled for June 17-18.

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Despite prior remarks suggesting Powell could be removed, Trump recently said he has no plans to fire him. Under the Federal Reserve Act, Fed governors can only be dismissed "for cause."

Powell, whose term ends in May 2026, has warned about tariff-linked inflation. In April, he told the Economic Club of Chicago that tariffs could increase both unemployment and prices.

In a recent Supreme Court ruling, the justices upheld the Federal Reserve's unique insulation from presidential interference, underscoring its status as a "quasi-private entity."

The May 22 decision permitted the removal of members from other federal agencies without cause but specifically excluded the Fed. The Court cited its historic structure, linking it to early U.S. banking institutions.

Justice Elena Kagan criticized the carve-out, saying the Fed's independence is based on the same legal reasoning as other agencies. She labeled the exception "bespoke" and argued it was crafted to calm the markets.

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Image created using photos from Shutterstock and the Fed.