President Trump went straight for Jerome Powell’s neck on Thursday, calling the Federal Reserve chair a “numbskull” during remarks at the White House while demanding an immediate cut to interest rates.
He claimed the US could save $600 billion every single year if Powell dropped rates by just 2 percentage points, but added, “we can’t get this guy to do it.”
Speaking at a bill signing ceremony in the White House East Room, Trump expressed total frustration, saying, “We’re going to spend $600 billion a year, $600 billion because of one numbskull that sits here and says, ‘I don’t see enough reason to cut the rates now.’”
The attack came after new data from the Labor Department showed that producer prices in May rose more slowly than expected, easing earlier fears about an inflation spike. Trump pointed to that and said Powell had no reason to keep rates high.
“I’m OK if they raise [rates] when inflation’s up,” he added. “But it’s down. And I may have to force something.” He didn’t explain what “force” meant, but the language alone rattled the room.
White House doubles down on Powell criticism
The hit on Powell wasn’t isolated. It was part of a full-court press from inside Trump’s own administration. Within the last two days, two senior officials publicly attacked Powell’s refusal to cut interest rates.
Commerce Secretary Howard Lutnick, speaking Wednesday night on Fox News, said, “It’s unbelievable how much we would save if [Powell] did his job and he cut interest rates.” He backed Trump’s view and insisted the economy was “ready for it,” adding, “It’s easy. Inflation is low. Come on. He’s got to do his job soon.”
Also on Wednesday, Vice President JD Vance posted a blunt message online. “The refusal by the Fed to cut rates is monetary malpractice,” Vance wrote. The coordination was obvious: Trump, Lutnick, and Vance were all on the same page, targeting Powell’s monetary policy in real time and using public pressure to push for immediate action.
As for the markets, they didn’t move much after the comments. Traders have already priced in no rate cut at next week’s Fed meeting, and the odds of a July cut are still low. But September? That’s where things shifted. CME Group data showed chances of a cut in September jumped from 69% to 76% by Thursday.
Meanwhile, Trump continued trying to brand Powell with a new nickname—“Too Late”—which he’s been repeating in recent speeches to hammer the point that Powell’s decisions aren’t keeping pace with the economic signals coming in. And the nickname’s stuck around. Powell hasn’t responded publicly.
Trump says he won’t fire Powell, but leaves the door open
Despite all the aggression, Trump said clearly on Thursday that he would not remove Powell before his term ends in May 2026. “I’m not going to fire him,” he said, before adding, “I don’t know why it would be so bad.”
The message was conflicting: technically no, but emotionally yes. He hasn’t attempted to fire Powell since April, when talk of removing him led to market volatility that forced Trump to step back.
Powell, on his side, has said multiple times that the president cannot fire him, and that the law protects his role. In May, the Supreme Court suggested that governors of the Federal Reserve have more job security than most other federal agency heads. That ruling added another legal layer that would make any firing move by Trump even harder.
Still, the heat isn’t going down. Powell may be legally safe, but politically, he’s in the hot seat. Trump is turning every public appearance into a stage to hammer the Fed chair.
Whether it’s by name-calling, coordinated messaging, or hinting at undefined “force,” the campaign is very much alive. Powell may not be out of a job, but he’s clearly out of favor.
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