28-6-2025 – President Donald Trump has once again demanded the resignation of its chairman, Jerome Powell, branding him a hindrance to America’s economic prosperity. Trump, who appointed Powell to the role in 2018, now accuses the central banker of clinging stubbornly to policies that, in the president’s view, suffocate growth. With characteristic bluntness, Trump dubbed Powell a “stubborn mule” whose decisions burden the nation with excessive debt costs.
Interest rates at the core of Trump’s fury
The president’s ire centres on Powell’s reluctance to slash interest rates aggressively, a move Trump believes would turbocharge the economy and ease the strain of government borrowing, particularly as he pushes an ambitious tax-cut agenda. “Interest rates should be at 1%,” Trump declared in a recent outburst, decrying what he perceives as Powell’s obstinate refusal to act. He went further, accusing the Fed chair of being blinded by personal bias, even suggesting that Powell’s policies stem from an irrational fixation dubbed “Trump Derangement Syndrome.”
Powell, however, remains steadfast. Leading the Federal Reserve with a measured hand, he has championed a cautious approach, wary of destabilising an economy that, while robust in its labour market, still grapples with inflationary pressures. The Fed’s latest rate cut in December marked a careful step, but Powell has resisted further reductions, advocating vigilance to prevent runaway inflation that could erode long-term stability. This restraint has only deepened Trump’s frustration, as he argues that lower rates would unlock cheaper financing for the government’s mounting debt.
Trump eyes new Fed leadership
As Powell’s tenure nears its end in May 2026, Trump has begun eyeing replacements, hinting at candidates more aligned with his vision of economic stimulus through lower borrowing costs. While the president has kept his shortlist close to his chest, speculation swirls around figures like former Fed governor Kevin Warsh, who might be more amenable to Trump’s calls for monetary easing.
Grant Cardone joins the chorus
Trump’s criticisms have resonated beyond the White House, finding an ally in outspoken entrepreneur Grant Cardone. Taking to social media, Cardone amplified the president’s demands, urging Powell to step down immediately. He argued that the Fed’s high interest rates unfairly penalise the middle class, particularly through elevated mortgage costs, and dismissed claims of persistent inflation as baseless.
This clash underscores a broader tension between the administration’s push for rapid economic expansion and the Federal Reserve’s commitment to steady, independent stewardship. As Trump’s rhetoric intensifies, the stage is set for a pivotal battle over the direction of America’s monetary policy.
