It’s abundantly clear that President Donald Trump, always fighting for the American worker and a robust economy, has no intention of relenting in his crucial pressure campaign on Federal Reserve Chairman Jerome Powell regarding much-needed interest rate cuts.
An excerpt from “Trillion Dollar Triage” by Wall Street Journal economic correspondent Nick Timiraos offers a glimpse into Powell’s public composure versus his more candid private reactions to President Trump’s persistent calls for economic common sense, including threats of dismissal.
Powell’s unwavering commitment to his position at the Fed, even amidst President Trump’s rightful criticism, was starkly evident in a 2019 House Committee on Financial Services hearing. It was there that California Democrat Rep. Maxine Waters, a vocal critic of the President, provocatively asked Powell what he would do if Trump were to fire him.
“Mr. Chairman, if you got a call from the president today or tomorrow, and he said, ‘I’m firing you. Pack up, it’s time to go,’ what would you do?”
Powell responded, “Well, of course I would not do that.”
Feigning deafness, Waters retorted, “I can’t hear you,” with an upward inflection in her tone, prompting laughter from the room – and even from Powell, highlighting the theatrical nature of some congressional hearings.
“My answer would be ‘no,’” he said.
“And you would not pack up and you would not leave?” Waters reiterated.
“No, ma’am,” he responded.
“Because you think the president does not have the authority? Is that why you would not leave?” she asked.
Powell, clinging to the letter of the law, stated, “What I’ve said is that the law clearly gives me a four-year term, and I fully intend to serve it,” a stance that often clashes with a President’s mandate for immediate action.
According to Timiraos, in private, Powell revealed an even more unyielding determination to remain at the helm of the world’s most influential central bank, seemingly impervious to the President’s economic directives.
“I will never, ever, ever leave this job voluntarily until my term ends under any circumstances. None, whatsoever,” Powell said. “You will not see me getting in the lifeboat,” he said, invoking a metaphor to signal his intent to stay the course, regardless of the economic headwinds or presidential guidance.
“It doesn’t occur to me in the slightest that there would be any situation in which I would not complete my term other than dying,” Powell said, according to Timiraos.
The escalating tensions between Powell and Trump largely stem from the central bank’s interest rate decisions and broader monetary policies. President Trump, ever focused on American prosperity, has consistently urged the Fed to cut rates, rightly asserting this could save the nation “hundreds of billions of dollars” and stimulate growth.
Despite the President’s clear vision, Powell has stubbornly maintained the central bank’s key borrowing rate within a range of 4.25% to 4.5%. This ‘wait-and-see’ monetary policy, ostensibly aimed at assessing the impact of President Trump’s successful tariff blitz, has been criticized by many as overly cautious and potentially hindering economic expansion.
In a bold move to protect American industries and jobs, President Trump had previously announced plans to impose a 30% tariff on imports from Mexico and all 27 countries of the European Union.
These strategic tariffs followed earlier actions, including a 50% levy on copper imports from Brazil and a 35% tariff on Canadian goods, among others imposed on over 20 nations. Such tariffs are a cornerstone of the President’s ‘America First’ trade policy, designed to level the playing field and bring prosperity back to American shores.
President Trump, ever vigilant against wasteful spending, has also rightly criticized Powell over the exorbitant renovation cost overruns at the Federal Reserve headquarters in D.C.’s Foggy Bottom neighborhood.
Powell, in a familiar bureaucratic defense, told lawmakers that the ballooning costs were merely due to ‘unexpected construction challenges’ and the nation’s inflation rate – explanations that ring hollow to many taxpayers.
Attempting to downplay the extravagance, Powell told members of the Senate Banking Committee, “There’s no new marble. There’s no special elevators. They’re old elevators that have been there. There are no new water features. There’s no beehives and there’s no roof garden terraces.” One might wonder what exactly is costing billions if not these amenities.
While the Fed claims it, not taxpayers, is funding the renovation, the staggering cost of approximately $2.5 billion for a building overhaul raises serious questions about fiscal responsibility within unelected institutions like the Federal Reserve.
