Key Takeaways
- Trump Slams Powell’s Leadership: The president criticized Fed Chair Jerome Powell as “grossly incompetent,” arguing that high interest rates are holding back economic growth.
- Push for Faster Rate Cuts: Trump wants aggressive rate reductions to stimulate investment and strengthen the U.S. economy, while the Fed remains divided and cautious.
- Fed Spending Under Fire: Trump mocked the Federal Reserve’s $2.5 billion headquarters renovation, comparing it to his own projects at a fraction of the cost.
President Donald Trump didn’t hold back Wednesday when he took the stage at the U.S.-Saudi Investment Forum in Washington, D.C. In classic Trump fashion, he tore into Federal Reserve Chair Jerome Powell, calling him “grossly incompetent” and joking that he’d love to “fire his ass.” The audience laughed, but the frustration behind Trump’s remarks was very real.
“[Powell’s] got some real mental problems. There’s something wrong with him,” Trump said, pointing straight at the Fed’s refusal to cut interest rates at the speed he wants. Trump reminded the crowd that Treasury Secretary Scott Bessent is the one keeping Powell in the chair — for now.
According to Trump, Bessent keeps pleading, “Sir, don’t fire him. Sir, please don’t fire him. He’s got three months to go.” Powell’s term ends in May 2026, but Trump made it clear he isn’t exactly counting down the days with excitement.
Trump believes high interest rates are doing unnecessary damage at a time when the economy needs momentum. The Fed has trimmed rates twice — once in September and again in October — bringing the federal funds rate down to 3.75 to 4 percent. But Trump wants more aggressive cuts to fuel growth, strengthen investment, and keep America’s economy leading the world.
Fed officials, meanwhile, are divided. Some worry about inflation, others fear a softening labor market, and no one seems eager to move quickly. A December cut is far from guaranteed.
Trump also mocked the Federal Reserve’s $2.5 billion headquarters renovation. “I’m building a ballroom that’s going to cost a tiny fraction of that,” he said. “And it’s bigger than the whole thing put together.”
For Trump, the message was unmistakable: America needs pro-growth monetary policy, not bureaucratic dithering — and the Fed is running out of excuses.