'That jerk will be gone soon': Trump slams Fed chief Powell over interest rates amid DOJ probe

Trump slams Powell amid federal probe

• Trump criticizes Fed Chair Powell for not cutting interest rates faster
• Justice Dept investigates Fed building renovation cost overruns, raising bipartisan worry
• Powell says investigation linked to political pressure over interest rate policy

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US President Donald Trump escalated his long-running feud with Federal Reserve Chair Jerome Powell on Tuesday, accusing the central bank chief of undermining economic momentum by refusing to cut intacerest rates more aggressively.

Speaking at the Detroit Economic Club during a visit to Michigan, Trump argued that strong market performance should prompt the Federal Reserve to ease borrowing costs rather than keep them elevated. “If you announce great numbers, they raise interest rates,” Trump said. “When the market goes up, they should lower rates.”

Only after laying out his case for faster rate cuts did Trump directly target Powell, claiming the Fed was failing to support economic growth. Trump said mortgage rates were falling, “that’s not with the help of the Fed,” before adding, “If I had the help of the Fed, it would be easier, but that jerk will be gone soon.”

The remarks came as Trump toured a Ford Motor Company plant in Dearborn that produces the F-150 pickup truck, part of a broader trip aimed at promoting domestic manufacturing and addressing concerns about job growth.

Earlier in the day, Trump sharpened his criticism, accusing Powell of either being “incompetent” or “crooked,” citing cost overruns linked to renovations at the Federal Reserve’s headquarters in Washington, a matter now under investigation by the US Justice Department.

Jerome Powell confirmed on Sunday that the Justice Department had opened a criminal probe connected to his past testimony before the Senate Banking Committee regarding renovations at the Marriner S. Eccles and Federal Reserve Board East buildings.

The project, which began in 2022, has seen its estimated cost rise from $1.9 billion to $2.5 billion, with the Fed attributing the increase to design changes, higher material and labor costs, and unforeseen conditions such as asbestos.

Powell linked the investigation to political pressure over interest rate policy, saying, “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best judgment of what serves the public, rather than following the president’s preferences.” He added, “No one, certainly not the chair of the Federal Reserve, is above the law,” while warning that the move must be viewed in the context of sustained pressure on the central bank.

Trump, however, dismissed Powell’s leadership, telling reporters and in media interviews that the Fed chair had “been too high on interest rates” and was doing “a very bad job.” He claimed he could renovate the Fed’s buildings for a fraction of the current cost and criticised the timeline, with completion expected in 2027.

The investigation has sparked bipartisan concern in Congress, with several Republican senators warning it could threaten the Federal Reserve’s independence. Senator Thom Tillis said he would block future Fed nominations until the matter is resolved, while Senators Lisa Murkowski and Kevin Cramer also voiced objections.

In a rare joint statement, three former Federal Reserve chairs and four former Treasury secretaries from both major parties condemned the probe, saying it “has no place in the United States whose greatest strength is the rule of law.”

Powell’s second term as Fed chair is set to end in May, and Trump is expected to announce a successor by the end of the month. Trump has repeatedly said he would appoint only a chair who supports lower interest rates, a stance that has intensified concerns about political interference in monetary policy.