Donald Trump Criticizes Jerome Powell on Truth Social for Refusing to Cut Interest Rates

Trump once again criticized Jerome Powell, this time for what he considers a complete lack of respect for the financial power of America. On Thursday, the president posted: "'Too late' undermines the creditworthiness of America. Now, once again, we are the world's number one credit nation! 'The spectacular comeback'. The Federal Reserve's interest rates should reflect this. We should be at the top of the list!!! LOWER THE INTEREST RATE!!!" This post was published right after Trump's budget director, Russell Vought, who is now the head of the Office of Management and Budget, sent Powell a letter criticizing how he handled a massive construction project at the Fed's headquarters. Russell stated that Powell "has managed the Fed poorly" and may have misled lawmakers in Congress. This message is not subtle at all. And it has opened a new round in the ongoing battle between Trump and the central bank director. Vought stated that the Powell renovation project exceeded the budget of 700 million dollars. In the letter, Russell criticized Powell for the rising costs of the Fed's headquarters renovation project in Washington. He stated that the project, which was already expensive, has now reached $2.5 billion - about $700 million higher than the original price. He called it "showboating" and claimed that the cost per square foot had risen to $1,923, a figure he deemed to be double the usual price of historic federal buildings. "The Palace of Versailles would cost $3 billion at current value!" he posted on X, along with the entire letter sent to Powell. The letter is based on Powell's recent testimony before the Senate Banking Committee on June 25, in which he told lawmakers that the building has nothing luxurious. Powell stated, "there are no VIP dining rooms, no new marble, no special elevators, no fountains, no beehives, and no rooftop gardens." Russell's letter directly responds to that testimony, stating that the original design called for a rooftop garden, an elevator, a private dining area, and luxurious interiors. He noted that Powell's version of the story did not match what had actually been planned. Russell also raised legal issues. He wrote that the project may violate the National Capital Planning Act, which requires the National Capital Planning Commission to approve major federal projects. "His testimony seems to indicate that the project does not comply with the approved plan regarding the main design elements," he wrote. And if that is the case, Russell said, the Fed will be forced to halt all construction activities immediately and submit a new approval request before proceeding. In the letter, he also asked Powell to answer 11 questions about the project within seven working days. The Trump administration has not indicated whether they will try to remove Powell, but pressure is mounting. Previously, Trump had considered firing him and even publicly mentioned replacing him before his term ends next spring. Now that Trump has returned to power, this idea may no longer be out of reach. Trump released a new economic study to criticize Powell over inflation. Two days ago, in a post on Truth Social about interest rates, Trump stated that a study by the Council of Economic Advisers (CEA) proved Powell was wrong from the start. "A new study by the Council of Economic Advisers (CEA), led by the esteemed Dr. Stephen Miran, found that Tariffs had NO IMPACT on inflation," Trump wrote. He does not stop there. "In fact, research shows that import prices are actually DECREASING, just as I have always said. Fake news and those so-called 'Experts' are wrong once again. Tariffs are causing our country to 'EXPLODE'. Many new factories, new jobs, and TRILLIONS OF DOLLARS in investments are flowing into America. Someone should let Jerome Powell know that 'Too late' about the non-existent inflation for many months and refuse to do the right thing. JEROME CUT INTEREST RATES — NOW IS THE TIME! Additionally, there is a legal barrier that Trump may want to break through. The Supreme Court recently ruled that members of the Fed's board of directors are protected from being dismissed by the president without cause. But if Russell's allegations remain in effect - regarding mismanagement, lying to Congress, or violating federal law - Trump may try to argue that Powell's actions have reached that threshold. Currently, Powell has not publicly responded to Russell's letter or Trump's post as usual. But time is running quickly for those 11 questions.