Trump’s Explosive Attack on Fed Chief Jerome Powell: ‘Numbskull’ Remark Sparks Debate

US President Donald Trump has once again taken aim at Federal Reserve Chair Jerome Powell, accusing him of keeping interest rates “too high” and labeling him a “numbskull.” Trump also implied Powell could be out of his position within eight months, though the legal basis for such a claim remains unclear.

“He keeps the rates too high, probably for political reasons,” Trump was quoted as saying by Reuters adding, “He’s done a bad job, but he’ll be out pretty soon anyway — in eight months.”

While Powell’s term as Fed Chair officially runs until May 2026, and his tenure as a member of the Federal Reserve Board continues until January 2028, Trump did not elaborate on how he arrived at the eight-month timeline.

Fed gets brickbats

Powell is also facing growing criticism from Republican lawmakers over the Federal Reserve’s ongoing $2.5 billion headquarters renovation project. Critics argue the central bank is overstepping its mandate and failing to maintain fiscal discipline.

Scott Bessent, a former Trump economic adviser, accused the Fed of unchecked spending.

“The Fed just prints money to fund itself. Its non-monetary activities have grown unchecked, and it’s time for a serious internal review,” he said. Bessent warned that Powell’s legacy could be marred unless he reins in what he calls the Fed’s “mission creep.”

He added, “Since the financial crisis, we’ve seen a form of gain-of-function monetary policy. Expenses are up, and the Fed’s role has expanded beyond its core mandate.”

Powell responds to criticism

In response to criticism over the renovation, Powell recently wrote to former Trump budget director Russ Vought, saying, “We take seriously the responsibility to be good stewards of public resources as we fulfill the duties given to us by Congress on behalf of the American people.” Powell has so far not directly responded to Trump’s latest personal remarks.

Also Read: Donald Trump vs. The Fed: Firing Rumors Rock Markets, Dollar Tumbles | Republic World

Will Powell be ousted?

When asked recently whether he might fire Powell, Trump responded ambiguously: “I don’t rule out anything, but I think it’s highly unlikely — unless he has to leave for fraud.”

Although U.S. presidents do not have the authority to fire Fed Chairs without cause, Trump’s remarks reflect his ongoing frustration with the central bank’s stance on interest rates, which he has long argued are stifling economic growth.