Trump Attacks Powell Once Again! Wants Him Out The Fed

In a development that has sent shockwaves through the financial world, former U.S. President Donald Trump has once again lashed out at Federal Reserve Chairman Jerome Powell, reigniting tensions over the direction of U.S. monetary policy. 

Trump’s latest remarks, posted on his Truth Social platform, come amid increasing pressure on the Fed to cut interest rates. 

With markets reeling and Bitcoin surging past $88,000, analysts are closely watching what could be a turning point for both traditional finance and crypto markets. 

As political drama swirls around The Fed, questions are mounting over the future of Powell’s leadership—and the long-term credibility of America’s central bank.

Markets React to Trump’s Renewed Criticism of Powell

After a long weekend, U.S. markets opened sharply lower on Monday amid escalating tensions between former President Donald Trump and Federal Reserve Chairman Jerome Powell. 

Trump, via his Truth Social account, launched a fresh broadside against Powell, accusing him of dragging his feet on interest rate cuts despite what Trump claimed was a rapidly deflating inflation environment.

The Dow Jones, Nasdaq, and S&P 500 all fell approximately 3.5%, while the U.S. dollar tumbled to a three-year low. 

According to traders, the sell-off reflects increasing market anxiety over monetary policy uncertainty and the growing potential for political interference at the Federal Reserve.

Read also: Is Jerome Powell More Dovish? Looking at the Latest Speech from the Fed's Chair

Trump’s Explosive Truth Social Post

In his characteristically unfiltered style, Trump wrote:

"‘Preemptive Cuts’ in Interest Rates are being called for by many. With energy costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other ‘things’ trending down, there is virtually no inflation… unless Mr. Too Late, a major loser, lowers interest rates, NOW."

Trump doubled down on claims that Jerome Powell, whom he originally nominated as Fed chair in 2017, was politically biased. 

He implied Powell had acted to favor President Biden and Vice President Kamala Harris during the last election cycle, suggesting that Powell only cut rates when it politically suited the Democrats.

A Renewed Call for Powell’s Removal

This is not the first time Trump has publicly attacked Powell, but the tone and urgency of this latest criticism have reignited speculation that Trump may push for Powell’s removal should he return to the White House. 

The former president’s repeated accusations of Powell being "too slow" and "politically compromised" are feeding into fears of a weakened central bank and long-term credibility issues for the Fed.

While the U.S. Constitution does not provide for the President to directly fire the Fed Chair, Trump’s escalating rhetoric suggests he could test legal boundaries if re-elected.

Bitcoin Rises as Dollar Weakens

Amid the turmoil, Bitcoin emerged as a beneficiary. The price of the world’s largest cryptocurrency neared $88,000, marking its highest point in over six weeks, before slightly retreating to $86,800.

Analysts say that institutional interest and increasing global liquidity—bolstered by fears over the Fed’s independence—are pushing Bitcoin upward. According to Dominick John from Kronos Research:

"Bitcoin’s breakout above $87,000 is being fueled by a tick up in global liquidity, driven by the expanding M2 money supply and renewed institutional interest."

Firms like Strategy have added to their holdings, with the company recently purchasing 6,556 BTC, now totaling over 538,200 BTC—worth roughly $47 billion at current prices.

Read also: Donald Trump's New Statement: Will It Impact the Crypto Market?

Institutional Bets Signal Long-Term Confidence

While Bitcoin ETF volumes dipped to their lowest four-day average of 2025, at just $1.785 billion per day, extrapolated data from The Block suggests the real story could be different. 

The estimated five-day projection puts ETF trading volume at $8.9 billion, still down significantly but showing signs of rebalancing after the recent sell-off.

Crypto analyst Nic Puckrin noted that Trump’s attack on the Fed is "just about the worst thing for the stability of the US dollar," and could accelerate Bitcoin’s use case as a store of value.

“Bitcoin is once again flirting with the ‘decoupling’ narrative,” Puckrin added. “It has broken out of its downtrend and is now trading above its 30-day exponential moving average.”

A Growing Divide on Economic Strategy

The European Central Bank, according to Trump, has already cut rates seven times in the past year, yet Powell has refused to follow suit. 

This comparison is a central point in Trump’s critique, suggesting the Fed is lagging behind international central banks in supporting economic growth.

Critics warn that aggressive political pressure on the Fed could undermine confidence in U.S. monetary policy, making it harder for the central bank to carry out its dual mandate of controlling inflation and ensuring maximum employment.

Read also: Jerome Powell Termination: Analyzing Its Impact on Crypto

What’s Next for Powell and The Fed?

For now, Jerome Powell remains at the helm of The Fed, with no indication of stepping down. However, Trump’s constant drumbeat of criticism—paired with market volatility—raises questions about how long Powell’s leadership can remain unchallenged amid such political heat.

As the 2025 election season heats up, expect Trump’s attacks on Powell, The Fed, and broader economic policy to become central talking points. 

And for crypto investors, this chaotic landscape might just be the bullish signal they’ve been waiting for.

FAQ

1. What did Trump say about Jerome Powell this time?

Former President Donald Trump took to Truth Social to criticize Federal Reserve Chairman Jerome Powell, calling him “Mr. Too Late” and a “major loser.” He demanded immediate interest rate cuts, citing declining energy and food prices and claiming there is "virtually no inflation."

2. Why is Trump targeting The Fed and Powell now?

Trump claims that Jerome Powell has been slow to act and accuses him of manipulating interest rates to favor President Biden during the last election cycle. He argues that The Fed is failing to respond to improving inflation metrics and risks slowing down the economy by keeping rates too high.

3. Can Trump remove the Fed Chair?

Not directly. While the President nominates the Federal Reserve Chair, the Federal Reserve Act does not allow for their unilateral dismissal. However, Trump’s rhetoric suggests he may challenge legal norms if re-elected.