Trump Urges Federal Reserve Board to Control Powell Amid Interest Rate Dispute

President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, calling him a "stubborn MORON" and demanding that the Federal Reserve Board remove Powell if he continues to refuse substantial interest rate cuts. Trump, who has called for a dramatic rate reduction of about 3 percentage points, has praised dissenting Fed governors Christopher Waller and Michelle Bowman, who recently voted to lower rates amid concerns about a slowing economy and softening job market. Both Waller and Bowman argue that the Fed's current cautious approach risks falling behind the curve and could worsen economic conditions. Despite the Fed's decision to maintain current rates, market expectations for a rate cut in the upcoming Federal Open Market Committee meeting have risen, influenced by disappointing job growth data. Trump’s aggressive tariffs and his push for rate cuts reflect his broader strategy to stimulate growth and reduce debt servicing costs, although independent economists warn of potential inflation risks. The situation marks an unusual public rift within the Fed and highlights the pressure Trump is applying on the central bank's leadership.