Vice President JD Vance has accused Federal Reserve Chair Jerome Powell of being asleep at the controls while interest rates stay high and inflation slows. JD said, “The Fed has been totally asleep at the wheel. As President Trump says, they’re TOO LATE, both in fighting inflation during Biden and in lowering rates now.”
This comes as the Trump White House keeps making it clear it sees Powell’s refusal to cut rates as a direct threat to the economy. JD’s comment followed the latest inflation report from the Bureau of Labor Statistics, which showed prices barely moved in June.
Both the headline and core inflation numbers rose just 0.1%. On a yearly basis, they landed at 2.4% and 2.8%, slightly above the Fed’s 2% goal. Still, JD and President Donald Trump believe there’s no excuse for keeping rates at their current levels, especially now that tariffs have shown no meaningful impact on inflation. JD called the Fed’s current stance “monetary malpractice.”
White House eyes Powell’s job and questions $2.5B Fed renovation
Inside the White House, talk of removing Powell is gaining steam. Kevin Hassett, Director of the National Economic Council, told This Week that Trump “doesn’t want to fire Powell”, but added that the administration is actively reviewing whether it has the authority to do so. “But certainly, if there’s cause, he does,” Kevin said, hinting that Powell could be pushed out before his term ends next spring.
One possible cause? The Federal Reserve’s $2.5 billion renovation project, which has already gone over budget by $700 million. Kevin pointed to the project as another example of Powell’s failed leadership. Though the money isn’t coming from taxpayers—since the Fed funds itself through interest and bank fees—Russell Vought, Director of the Office of Management and Budget, slammed Powell last week for “grossly mismanaging the Fed” and called for an investigation into the renovation.
Russell sent Powell a list of questions about the project, demanding detailed answers. Kevin said Sunday that how the administration proceeds next will depend on those responses. “I think that whether the president decides to push down that road or not is going to depend a lot on the answers that Russ Vought sent to the Fed,” he told This Week.
In response, the Federal Reserve quietly updated its website with a new FAQ section. The page addressed some of Russell’s questions directly, stating, “No new VIP dining rooms are being constructed as part of the project.” That response was aimed at a specific concern raised about possible waste in the renovation spending.
Even though Trump said as recently as Friday that he’s not eager to fire Powell, he also said he already has replacements in mind. Powell’s term ends in May 2026, and the president seems prepared to act if things don’t change. Kevin is reportedly among the top names being considered for the job. Another name in the mix is Kevin Warsh, a former Federal Reserve Governor.
Also under consideration is Treasury Secretary Scott Bessent. Trump has not confirmed who he would choose, but has made clear that the Fed’s current leadership isn’t meeting expectations. Meanwhile, JD keeps hammering the same message: lower the rates now, or get out of the way.
