Trump and his aides have escalated attacks, including insults and investigations into Fed spending.
Jerome Powell is staying exactly where he is, and he’s not cutting interest rates either. According to reporting from CNN, the Federal Reserve Chair told people close to him that he won’t give in to President Donald Trump’s repeated demands to either quit or cut rates.
Powell, who was originally nominated by Trump in 2017, is now the focus of an aggressive campaign from the White House, but he’s refusing to budge.
Behind closed doors, Powell has said stepping down would do more harm than good. His argument is simple: walking away now would give the impression that the Fed can be pushed around by whoever’s in power. That’s not a risk he’s willing to take.
“He feels very strongly that his responsibility is to maintain that independence,” said Mike Rounds, a Republican senator from South Dakota, who asked him directly about resigning. “I’ve asked him, and he says no, that would reduce the independence of the Federal Reserve.”
Trump keeps pressure on Powell over interest rates
Trump hasn’t let up. He’s made Powell the main target in a public push to lower borrowing costs, ramping up his criticism over the past several weeks. He’s gone as far as insulting Powell daily, calling him “stupid,” “a numbskull,” and “truly one of my worst appointments.” At one point earlier this month, Trump told reporters, “I think he’s terrible. It’s like talking to a chair. No personality.”
The attacks haven’t just come from the president himself. Members of Trump’s team have jumped in, spreading unverified claims that Powell was preparing to resign. The White House has also started looking into a $2.5 billion construction project underway at the Fed, questioning the cost overruns and hinting it could be grounds for termination.
Last Thursday, Trump took the fight directly to the Federal Reserve building. He showed up to tour the construction, and it was Powell who personally walked him through it. At one point, the president slapped him on the back and joked, saying he’d “love him to lower interest rates.” Powell, standing next to him, gave an awkward laugh, but he didn’t respond to the pressure. He wouldn’t.
Powell stays focused on monetary policy despite tension
While all this has played out in public, Powell has stuck to the Fed’s job. He hasn’t made any political statements or hinted at resignation. He’s told people close to him he plans to serve out his full term, which ends in May 2026. That means he’s ready to keep absorbing political attacks for another year, without changing policy direction.
Powell, who worked in the George H.W. Bush administration and later joined the Federal Reserve, built his image on being low-profile and data-driven. That reputation helped him get through the Senate confirmation with bipartisan support when Trump picked him eight years ago. He’s never been one for political back-and-forth, and that’s exactly what now frustrates the man who appointed him.
People familiar with the Fed’s internal operations say Powell’s decisions come strictly from economic data. That includes the call to hold rates steady even as the White House pushes for cuts. His general tone hasn’t changed: no drama, no reaction, just carry on with the work.
So far, that’s exactly what he’s doing. Powell has told allies he’s not leaving, and he’s not changing the Fed’s course because of who sits in the Oval Office. Publicly, he remains focused on setting monetary policy, ignoring the political fallout that comes with every decision.
As far as Powell is concerned, staying silent and staying put is the best way to protect the Fed from outside influence.
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