The president escalated his attack on Federal Reserve Chairman Jerome Powell to lower interest rates while his administration continued to accuse Powell of improper spending on renovations at the institution.
Powell had adopted a wait-and-see position on interest rates in anticipation that inflation might increase as a result of the tariffs imposed by President Donald Trump. On Tuesday, the president continued his rhetorical jab at Powell, despite a report showing an increase in inflation.
‘He’s a knucklehead. Stupid guy. He really is.’
“We should have the lowest interest rate anywhere in the world. Jerome Powell has done a terrible job. And frankly, I don’t think he could do a worse job. He’s called everything wrong,” the president said to reporters.
“So they had a report come out the other day, 71 different economists and me — you know who was right? Me! Did you know that? I was right!” he added, apparently referring to estimates of inflation from his tariffs.
On Tuesday, the Core Consumer Price Index was reported to have risen to 2.9% on a year-to-year basis. The increase led many to believe that Powell would refuse calls from the president to cut rates in order to cut off any overheating of the economy. Powell has previously said his target for safe inflation was about 2%.
“I tried being nice to the guy. It doesn’t help. He’s a knucklehead. Stupid guy. He really is,” Trump said about Powell in comments from the White House on Monday.
RELATED: Federal Reserve Chairman Jerome Powell says he will not resign if asked by Trump
Earlier in July, Federal Housing Finance Agency Director William Pulte called for an investigation into Powell’s “political bias” as well as his “deceptive Senate testimony” and said they were enough to dismiss him from his position.
Powell has defended the independence of the Federal Reserve and denied claims that the president could fire him at will.
He also called for an independent probe into the renovation accusations. In a letter to members of the Senate Banking Committee, Powell indicated that he asked the Fed’s inspector general, Michael Horowitz, to review the costs of the renovation and anything else related to the project.
“The Board’s IG conducted an audit in 2021 to assess the Board’s process for planning and managing multiple renovation projects as well as procuring services under various renovation-related contracts,” Powell said in the letter. “I have asked the Board’s IG to take a fresh look at the project.”
Powell was first nominated to head the Federal Reserve by Trump during his first term, but the president has soured on his leadership and has lobbed numerous insults and accusations at the central banker.
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