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President Donald Trump on Friday criticized Federal Reserve Chair Jerome Powell, blaming him and the central bank for high interest rates that he says are pricing young Americans out of the housing market.
In a Truth Social post, Trump accused Powell of “choking out the housing market” and labeled him “truly one of my worst appointments.” Trump also faulted former President Joe Biden for reappointing Powell in 2022.
“‘Too Late,’ and the Fed, are choking out the housing market with their high rate, making it difficult for people, especially the young, to buy a house. He is truly one of my worst appointments. Sleepy Joe saw how bad he was and reappointed him anyway – And the Fed Board has done nothing to stop this ‘numbskull’ from hurting so many people,” Trump wrote on Truth Social.
“In many ways the Board is equally to blame! The USA is Rockin’, there is VERY LOW INFLATION, and we deserve to be at 1%, saving One Trillion Dollars a year on Interest Costs. I can’t tell you how dumb Too Late is – So bad for our Country!” he continued.
Trump first appointed Powell to lead the Federal Reserve in 2017. His second term, under Biden, runs through 2026.
The president’s criticism of Powell has escalated in recent weeks, particularly over the Fed’s decision to keep interest rates elevated in response to concerns about inflation. Trump and his allies argue that the economy now warrants rate cuts to stimulate borrowing and homeownership.
Trump has floated the possibility of replacing Powell but said Wednesday that it is “highly unlikely” he would fire him, even though he has repeatedly called for Powell’s resignation. The U.S. president can only fire a Federal Reserve chair for cause, and such a move would likely face legal challenges and rattle financial markets.
Trump previously called for Powell to resign if he misled lawmakers during recent testimony about a costly renovation of the central bank’s Washington headquarters.
Speaking during a Cabinet meeting, Trump voiced support for a congressional investigation into Powell, whom he has repeatedly criticized for refusing to lower interest rates. The president’s remarks follow ongoing controversy over rising renovation costs at the Fed’s main building and concerns raised by Republican lawmakers.
“If he misled Congress, Powell should resign,” Trump said.