President Donald Trump has publicly criticized Jerome Powell, the chairman of the Federal Reserve, for not lowering interest rates. He has called Powell “too late” and a “loser” and has reportedly considered a lawsuit against him. This criticism comes amid uncertainty surrounding Trump’s proposed tariffs.
In a post on Truth Social, Trump overstated the cost of a Federal Reserve building project. In the same post, he recalled appointing Powell during his first term, a detail he seemed to have forgotten previously.
Trump wrote in his post, “Jerome ‘Too Late’ Powell must NOW lower the rate. Steve ‘Manouychin’ really gave me a ‘beauty’ when he pushed this loser.” Trump used the misspelling “Manouychin” to refer to Steve Mnuchin, his former Secretary of the Treasury.
Trump’s Biden-Powell gaffe
Trump has previously suggested that President Joe Biden appointed Powell, stating, “I was surprised, frankly, that Biden put [Fed Chair Powell] in and extended him.” In reality, Trump nominated Powell in November 2017. President Biden later renominated Powell in 2021 for a second term, which began in May 2022.
In his Truth Social post, Trump continued his criticism, writing, “The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board.”
He also mentioned a potential lawsuit, adding, “I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings. Three Billion Dollars for a job that should have been a $50 Million Dollar fix up. Not good!”
The Martin building mix-up
Just watch this. Here Trump makes up a higher number for the new fed building construction, Powell factchecks him – you just added the building that was finished 5 years ago! pic.twitter.com/aa6LClW6CL
— Olga Nesterova (@onestpress) July 24, 2025
Trump has publicly criticized the renovation of the Federal Reserve’s headquarters, claiming costs had ballooned to $3.1 billion, far above the Fed’s $2.5 billion estimate. However, Powell pushed back against this figure during a tour on July 24, 2025, explaining that Trump’s figure incorrectly included the Martin building, which was completed five years earlier and was not part of the current project.
Trump has repeatedly pressured Powell to lower interest rates, reportedly calling him a “stubborn MORON” and even threatening to seize control of the Fed’s rate-setting process. Trump argues that lower rates would boost economic growth and reduce borrowing costs.
Chairman Powell and the Federal Reserve have resisted dramatic cuts, pointing to inflation that remains above the Fed’s 2% target. The Fed’s preferred measure for this is the “core PCE index,” which tracks the average price change for goods and services purchased by U.S. consumers but excludes the volatile costs of food and energy.
Amid Trump’s attacks, Powell and many others have emphasized the need to maintain central bank independence. One of the primary concerns for the Federal Reserve is that Trump’s tariff proposals could lead to an increase in consumer prices, which would worsen inflation if interest rates were to be lowered prematurely.
As a result, Powell and other members of the Federal Open Market Committee (FOMC) have stated they require more definitive data on how these tariffs will affect inflation before taking any significant policy actions.
