On June 20, 2025, former President Donald Trump significantly escalated his criticism of Federal Reserve Chair Jerome Powell, publicly mulling the possibility of firing him and launching a barrage of insults. Trump lambasted Powell as a “Total and Complete Moron,” “dumb guy,” and “numbskull” for the Federal Reserve’s decision to maintain interest rates, which he believes should be lowered at a faster pace to stimulate economic growth. This renewed attack highlights a long-standing tension between Trump and the central bank leader, whom he appointed during his first term.

Trump’s discontent stems from the Federal Reserve’s interest rate policies. The central bank's rate-setting committee, chaired by Powell, has kept its benchmark rate steady throughout the current year, following a slight reduction from a two-decade high last year. These decisions come after a series of rate hikes in 2022 and 2023, aimed at quelling inflation. While high interest rates can slow economic growth and increase borrowing costs, lowering them too quickly risks reigniting inflation, which, though cooled, remains above the Fed’s 2% annual target. Powell has articulated that the economy’s current solidity allows for a cautious approach to rate adjustments, a stance directly at odds with Trump’s immediate call for cuts, which he has even suggested be followed by new hikes if inflation spikes.

The possibility of Trump firing Powell, should he return to office, remains legally contentious. Federal law and prior court precedents stipulate that members of the Federal Reserve’s Board of Governors, including the chair, can only be dismissed “for cause.” While the Supreme Court recently ruled that the Trump administration could fire members of other independent federal agencies, it specifically exempted the Fed, recognizing it as a “uniquely structured, quasi-private entity.” Powell himself stated last year that he would not resign if asked to step down. Despite having claimed in April that he had “no intention” of firing Powell, Trump’s recent post on Truth Social, questioning if he should “change my mind about firing him?” and noting that Powell’s term “ends shortly,” indicates a potential shift in his stance.

Trump’s aggressive rhetoric has seen him try various approaches with Powell, admitting he has “been nice, I’ve been neutral, and I’ve been nasty.” He expressed frustration that the previous methods did not yield the desired outcome of lower rates, attributing Powell’s decisions to him being a “dumb guy, and an obvious Trump Hater.” He also suggested that other members of the rate-setting Federal Open Monetary Committee should “override” Powell. This current wave of criticism is reminiscent of his pushback against Powell’s rate hikes in 2018, though he famously dubbed Powell his “most improved player” after rates were slashed during the 2020 pandemic. The Fed has consistently declined to comment on Trump's criticisms.