Trump’s Fed Feud: Dementia Don Strikes Again

Lighting Fires, Firing the Firefighter, and Dreaming of Cheap Eggs

In a plot twist worthy of a bad reality show, Donald Trump is threatening to fire Federal Reserve Chair Jerome Powell — the very man Trump himself appointed — for not lowering interest rates fast enough to save him from… his own economic blunders.

Yes, the same Trump who insisted China pays the tariffs, who tanked the stock market with his trade wars, and who seems to have forgotten he even appointed Powell in the first place. Now he’s screaming about inflation and blaming Powell, while dangling a $2.5 billion building renovation as a flimsy excuse to push him out.

And somehow, somewhere in this alternate universe, he keeps claiming Americans are paying $1.98 for gas and buying groceries at Depression-era prices, even though no one has seen either of those prices in years.

Oh, and the egg prices he campaigned on fixing? Still high.

What the Fed actually does

The Federal Reserve sets interest rates, fights inflation, and supports employment. Crucially, it’s designed to be independent, making decisions based on economic data, not campaign theatrics.

The Chair runs the Fed but must already be a confirmed governor of the Board of Governors, which has 7 members serving staggered 14‑year terms. The Chair’s term is 4 years and renewable. So yes, Trump picked Powell in 2017, but Biden reappointed him in 2022, extending his chairmanship through 2026.

What actually happened

• 2017: Trump appoints Powell as governor → elevates him to Chair.

• 2020: Pandemic crashes economy → Fed steps up → recovery begins.

• 2021–2024: Under Biden, unemployment fell to 3.5%, inflation (which peaked globally in 2022) declined to more manageable levels, and wages rose.

• 2025: Trump returns → claims Biden wrecked everything.

• April 2025: Trump launches “Liberation Day” tariffs → raises inflation risks → Powell pauses planned rate cuts.

• Now: Trump threatens to fire Powell, citing a building renovation as justification, while claiming the economy is terrible and gas is magically $1.98 somewhere.

Powell’s own words

When asked if the Fed would have cut rates if not for Trump’s tariffs, Powell replied:

“I think that’s right. The tariffs materially increased inflation forecasts … so we’ve been on hold to assess the impact.”

Translation: Trump’s own policies forced the Fed to pause rate cuts because that’s what the data demanded.

Global context

Inflation spikes weren’t just an American problem. Europe and other major economies experienced similar or worse price pressures after the pandemic and energy shocks. Pretending that Biden and Powell uniquely caused U.S. inflation ignores the global reality.

The Renovation Red Herring

Trump and his allies have seized on a $2.5 billion renovation of the Federal Reserve’s headquarters as a supposed reason to fire Powell. But this is pure political theater:

✅ The Fed funds itself.
It earns money from its own operations — mainly interest on Treasury securities — and after covering its expenses (including the renovation), it returns the remainder to the U.S. Treasury. It doesn’t take taxpayer money from Congress.

✅ The Fed is regularly audited.
The Fed undergoes annual independent audits, and its finances are transparent and published. In contrast, the Pentagon, with its nearly $850 billion annual budget, has never passed a full audit, despite repeated promises to do so.

So the idea that Powell should be fired over a fully‑funded, legal, and transparent building project while the Pentagon keeps flushing billions on $2,000 toilet seats and $600 hammers is about as serious as one of Trump’s grocery price fantasies.

Why this matters

The Fed’s independence exists to prevent exactly this kind of impulsive, politically driven meddling. Undermining it spooks markets, hurts consumers, and risks long‑term stability, all so Trump can blame someone else for the inflation his own policies worsened.

And no, Mike Lindell, Kid Rock, or whoever he saw on Newsmax cannot legally replace Powell overnight, because the Chair must already be a Senate‑confirmed governor. Thankfully.

What you can do

We can’t (and shouldn’t) call Congress to pressure the Fed, but we can defend its independence and hold Trump accountable for threatening it.

✅ Speak up publicly: share the facts, push back on the lies about $1.98 gas & Fed sabotage.
✅ Write your member of Congress not to interfere with monetary policy, but to publicly defend Fed independence in hearings & statements.
✅ Support candidates who respect the rule of law and institutions like the Fed, not those who treat them like campaign toys.

To reach your members of Congress and urge them to stand up for central bank independence & the rule of law, call the U.S. Capitol Switchboard: (202) 224‑3121

Even just say:

“I want my Representative/Senator to speak out in support of Fed independence and against Trump’s threats to fire Powell for political reasons.”

Trump lit the fire (tariffs), blamed Biden for the smoke, and now wants to fire the firefighter (Powell) for not dumping gasoline (rate cuts) fast enough, and his excuse is that the firehouse has marble floors.

The economy isn’t a TV set that Trump can kick when it stops working. And Americans aren’t buying his fantasy grocery list anymore. If we care about economic stability — and reality — it’s time to call this feud what it is: another Trump distraction from the real damage he’s doing, and a warning about what happens when the arsonist runs the fire department.

Bibliography:

• “How Trump Could Use a Building Renovation to Oust Fed Chair Powell.” Associated Press, July 16, 2025.

• “White House Escalates Pressure on Fed Chair by Targeting Its Headquarters Renovation.” Associated Press, July 10, 2025.

• WCVB. “Under Fire by Trump over Costs, Chair Powell Seeks Watchdog Review of Fed Building Overhaul.” July 14, 2025.

• Revell, Eric. “Fed Chair Powell Confirms Tariff Concerns Prevented Interest-Rate Cuts so Far This Year.” FOX Business, July 1, 2025.

• The Daily Beast. “Fed Chair Powell Blames Trump’s Tariffs for Steady Interest Rates: ‘We Didn’t Overreact.’” July 2, 2025.

• Reuters. “Powell Reiterates Fed Will Wait for More Data before Cutting Rates.” July 1, 2025.

• Reuters. “Fed’s John Williams Says Tariffs Are Only Just Starting to Push Up Inflation.” July 16, 2025.

• Reuters. “Fed’s Inflation Fears Start to Be Realized with June CPI Increase.” July 15, 2025.

• Reuters. “Fed’s Bostic: Recent Data Show Price Pressures May Be Building.” July 16, 2025.

• Reuters. “Can Trump Fire Powell? A Supreme Court Case Could Decide.” July 2025.

• The Guardian. “Federal Reserve Chair Blames Trump’s Tariffs for Preventing Interest Rate Cuts.” July 1, 2025.