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Trump Resumes Attacks on Fed Chair Powell

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  Published in Automotive and Transportation on Friday, January 30th 2026 at 22:04 GMT by The Raw Story
      Locales: District of Columbia, New York, Virginia, UNITED STATES

Palm Beach, FL - January 31st, 2026 - Former President Donald Trump reignited his long-standing feud with Federal Reserve Chair Jerome Powell today, delivering a scathing critique on his Truth Social platform. Accusing Powell of being "terrible" and "wrong," Trump leveled charges of "horrible policy mistakes" that he claims are actively harming American businesses. This latest volley of criticism comes as the Federal Reserve navigates a complex economic landscape characterized by persistent, though cooling, inflation and the ongoing debate surrounding future interest rate adjustments.

Trump's post, a hallmark of his direct and often provocative communication style, read: "Jerome Powell is a disaster! He's TERRIBLE and WRONG! The Fed is destroying our businesses!" He followed this with a broader indictment of the current economic situation, stating, "Our country is being destroyed by high interest rates and inflation. It's a terrible situation, but we will fix it!"

This isn't an isolated incident. Throughout President Joe Biden's administration, Trump has consistently attacked the Fed, attributing economic woes to its policies. However, experts note a pattern of Trump blaming the Fed when economic indicators are unfavorable, while taking credit for positive performance during his own presidency.

A History of Conflict & Economic Policy

The relationship between Trump and Powell was strained even during Trump's time in office. While initially praising Powell's appointment, Trump increasingly criticized him as the Fed began raising interest rates in 2018, fearing it would stifle economic growth. He repeatedly called for lower rates, even publicly demanding that Powell be fired - a move that would have been unprecedented and potentially destabilizing to the financial system.

These calls for intervention often ignored the Fed's core function: maintaining price stability and full employment. The Fed is designed to be independent from political pressure, allowing it to make decisions based on economic data rather than short-term political considerations. Trump's consistent attempts to influence the Fed raise serious questions about his understanding of, and respect for, this critical independence.

The Current Economic Context

As of January 2026, the U.S. economy continues to show signs of resilience, although growth has slowed from the rapid pace seen in 2023 and early 2024. Inflation, while significantly down from its peak in 2022, remains above the Fed's 2% target. This has created a delicate balancing act for the Fed. Further interest rate hikes risk pushing the economy into a recession, while holding rates steady could allow inflation to re-accelerate.

The central bank's most recent meeting saw policymakers hold rates steady, but signaled they are closely monitoring economic data and remain prepared to raise rates again if necessary. The labor market, while still strong, is showing signs of cooling, with unemployment creeping upwards. This adds to the complexity of the Fed's decision-making process.

Expert Reactions & Potential Implications

Economists are largely dismissing Trump's criticisms as politically motivated rhetoric. "It's a classic case of blaming the central bank for problems that are often the result of a complex interplay of factors," says Dr. Eleanor Vance, a professor of economics at Georgetown University. "The Fed is tasked with making difficult decisions in uncertain times, and it's easy to criticize those decisions after the fact. But to suggest that they are 'destroying businesses' is simply untrue."

However, the repeated attacks on the Fed could have several implications. Some worry that it erodes public trust in the institution, potentially undermining its effectiveness. Others believe that it could influence the political discourse surrounding monetary policy, making it more difficult for the Fed to operate independently.

With the 2028 presidential election already looming large in the public consciousness, Trump's continued attacks are seen by many as an attempt to lay the groundwork for future blame-shifting should the economy falter. The former president's strategy appears to be to position himself as the economic savior, capable of "fixing" the problems he attributes to the current administration and the Federal Reserve. The coming months will be crucial as the Fed continues to navigate the economic headwinds and respond to political pressures.