Things are getting ugly.
Federal Reserve Chairman Jerome Powell took a direct swipe at President Donald Trump’s trade agenda on Tuesday, blaming the administration’s popular tariff policies for delaying much-needed interest rate cuts — a move that could be costing American families, retirees, and small business owners big.
Speaking from an elite banking summit in Portugal, Powell criticized Trump’s “Liberation Day” tariffs, claiming they pushed up inflation forecasts and forced the Fed to hit pause on lowering borrowing rates.
“We went on hold when we saw the size of the tariffs,” Powell said. “All inflation forecasts for the United States went up materially as a consequence.”
His remarks came just one day after President Trump blasted Powell on Truth Social, posting a handwritten note accusing the Fed of dragging its feet — even as other countries aggressively slash their rates to boost growth.
Trump Fights for the American Worker — While the Fed Plays Global Politics
Earlier this year, President Trump introduced sweeping new tariffs — including a 10% baseline on dozens of countries and a stunning 145% on China — in a bold move to bring jobs back to the U.S. and defend American manufacturing.
But instead of working with the administration, Powell’s Fed has chosen to delay, creating uncertainty for mortgage holders, retirees, and small business owners who are already battling inflation, energy costs, and Biden-era economic damage.
Powell, who was appointed by Trump during his first term, is now under fire from Senate Republicans for allegedly misleading lawmakers about a $2.5 billion taxpayer-funded renovation of the Fed’s Washington, D.C. headquarters — sparking fresh concerns over transparency and accountability.
Fed Refuses to Act — While Inflation and Borrowing Costs Hit Hard
Powell told the crowd of international bankers that the Fed will “wait and learn more” before cutting interest rates — a stance that continues to frustrate many Americans who are paying higher interest on home loans, car loans, and credit cards.
“As long as the U.S. economy is in solid shape, the prudent thing to do is wait,” Powell said, ignoring growing calls for immediate relief.
The Fed’s next meeting is scheduled for July 29–30, and while Powell didn’t rule out a rate cut, he didn’t commit to one either.
“We’re going meeting by meeting,” he said. “It’s going to depend on how the data evolve.”
New inflation figures are expected in the next two weeks, and the jobs report for June drops this Thursday. The deadline for Trump’s next round of global tariffs lands on July 9, adding even more pressure on Powell’s Fed to act.
Trump Prepares to Replace Powell? Shadow Fed Leadership Could Be Coming
With Powell’s term ending in May 2026, rumors are swirling that President Trump may announce his replacement well in advance, effectively sidelining the Fed chair and installing a pro-growth, America-first voice in the nation’s most powerful financial institution.
Though Powell could technically remain on the Fed board until 2028, most past chairs step down completely at the end of their term. And if Trump retakes the White House, a more aggressive, patriotic economic strategy is almost certain to follow.
Bottom Line: Powell’s Delay May Hurt Seniors, Veterans, and the Middle Class
As the cost of living continues to rise and interest rates remain stuck, many conservative Americans are asking why the Fed seems more interested in appeasing global bankers than helping everyday U.S. citizens.
President Trump continues to champion low taxes, fair trade, and economic freedom — while Powell appears to be throwing up roadblocks. Whether the Fed will finally act in July remains to be seen.