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President Donald Trump again criticized Federal Reserve Chairman Jerome Powell on Thursday night, claiming the central bank has been discredited after keeping interest rates high even as mortgage rates fell to a three-year low.
The president has repeatedly attacked Powell for not cutting rates sooner, frequently referring to him as “too late” Powell. The president has also suggested in the past that he could remove Powell, though the extent of a president’s authority to fire a Federal Reserve chair remains unsettled.
In a post on Truth Social, President Trump said Powell’s leadership had damaged the Fed and suggested the decision to hold rates steady was driven by personal animosity tied to their ongoing feud.
“Mortgage Rates just hit a Three-Year Low despite Jerome ‘Too Late’ Powell, and his never ending quest to keep Interest Rates high (against ‘TRUMP!’),” the president wrote. “It just shows that he has been wrong all along, because the Market is overtaking his obstinance. The Fed has been hurt and discredited during Too Late’s reign.”
President Trump’s comments came as the administration continues to investigate Powell over testimony he gave before the Senate Banking Committee last June. The inquiry is at least partly focused on Powell’s remarks about the cost of renovating historic Federal Reserve buildings.
Powell has previously said scrutiny of the renovation effort should be viewed in the context of rising political tensions between the White House and the central bank, which is designed to operate independently from direct political pressure.
The Federal Reserve has held its benchmark interest rate steady in recent months, citing persistent inflation risks, even as some borrowing costs in the broader economy have eased.
The attacks are part of ongoing criticism from President Trump over Powell’s failure to lower interest rates and to take other steps to help the American people. In December, he threatened to sue Powell over his handling of the construction of Fed buildings.
“We’re thinking about bringing a suit against Powell for incompetence. Because think of it, these aren’t outstanding buildings. These are small buildings,” the president said at the time.