Trump associates intensifying power struggle against Jerome Powell
In a series of events unfolding over the past few months, President Donald Trump and his allies have been putting pressure on Federal Reserve Chair Jerome Powell to lower interest rates. Here's a breakdown of the key individuals involved in this high-stakes campaign.
President Donald Trump himself has been vocal in his criticism of Powell, publicly referring to him as "Mr. Too Late" and a "knucklehead," and demanding that the Fed cut interest rates to below 1% to boost the economy[1].
White House officials James Blair and Russ Vought have played significant roles in this campaign. They accompanied Trump on a scheduled visit to the Federal Reserve headquarters to inspect costly renovations, as part of a broader effort to challenge Powell[2]. Russ Vought, as the Office of Management and Budget Director, is at the centre of the White House efforts to leverage the Fed's expensive renovation project in its pressure campaign[4].
Former economic adviser Stephen Moore has also been part of the administration’s campaign, aiming to "throw some interference at Powell"[2].
Treasury Secretary Steven Mnuchin has likened Trump's aggressive lobbying of Powell over interest rates to basketball coach Bobby Knight's tactic of "working the refs" to influence decisions[2].
Senator Thom Tillis represents a potentially opposing voice on the Fed chair nomination, advocating for Fed independence despite Trump's criticisms and possible plans to replace Powell[4]. Fed Governor Christopher Waller is mentioned as a possible candidate to replace Powell[4].
Bill Pulte, Federal Housing Finance Agency Director and a Trump ally with a massive social media following of 3 million followers, has been relentless in his pursuit of Powell, often trafficking in rumors or outright falsehoods to amplify his efforts[5]. James Blair, another key figure, has recently emerged as a player in the Powell pressure campaign, following his unexpected appointment to the National Capital Planning Commission[6].
Notably, Jerome Powell has served as a member of the Federal Reserve's board of governors since 2012, and was nominated by President Trump in 2018 and confirmed by a large, bipartisan Senate vote[7]. It's important to clarify that Powell has no authority to set interest rates unilaterally, that authority belongs to the Federal Open Market Committee, of which he is one of 12 voting members[8].
The Federal Reserve is expected to announce its interest rate decision on Wednesday[9]. However, the Fed is widely expected to leave its benchmark rate unchanged despite pressure from Trump and his advisors[10].
This pressure campaign reflects broader political and economic tensions about monetary policy and central bank independence[1][2][4].
Sources:
- CNN
- New York Times
- Bloomberg
- Politico
- Forbes
- Axios
- Federal Reserve
- Investopedia
- CNBC
- CNN
- The business of economics and politics has seen intense activity recently, with President Donald Trump and his allies putting pressure on Federal Reserve Chair Jerome Powell to lower interest rates.
- James Blair and Russ Vought, White House officials, have played significant roles in this campaign, accompanying Trump during a visit to the Federal Reserve headquarters to challenge Powell.
- Former economic adviser Stephen Moore has also been part of the administration’s campaign to "throw some interference at Powell."
- Treasury Secretary Steven Mnuchin compared Trump's aggressive lobbying of Powell over interest rates to basketball coach Bobby Knight's tactic of "working the refs."
- Senator Thom Tillis, while representing a potentially opposing voice, advocates for Fed independence despite Trump's criticisms and possible plans to replace Powell.
- Bill Pulte, a Trump ally with a large social media following, has been relentless in his pursuit of Powell, often trafficking in rumors or falsehoods to amplify his efforts.
