Trump urges Congress to dial up heat on 'hardheaded' Fed Chair Powell

President Trump told Congress to give Federal Reserve Chairman Jerome Powell a tough grilling when he appears Tuesday before a House panel to testify on the central bank’s monetary policy report.

Mr. Powell said the Fed is keeping the benchmark interest rate at 4.25% to 4.5%, given the uncertainty around Mr. Trump’s trade policies and the rate of inflation. It is infuriating Mr. Trump, who says rates should be at least 2 or 3 points lower.

“I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come,” the president posted on Truth Social before Mr. Powell testified to the House Financial Services Committee.

Mr. Trump says inflation has been mild, so U.S. borrowers deserve more favorable terms. He said Europe has cut interest rates multiple times while the Fed stands pat.

Some Fed governors have said that cuts in July could be warranted, creating internal pressure on Mr. Powell.

Mr. Trump, in his social media post, seemed to nod to that pressure by saying the Fed board should “activate.” He said the central bank could correct course if the economic picture worsened.

“No inflation, great economy — We should be at least two to three points lower,” Mr. Trump posted. “Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate.”

The president appoints a Fed chairman every four years but doesn’t have the authority to fire him or her. Mr. Powell's term ends in May 2026.

The Fed is an independent agency supposed to be free from direct political pressure, though that firewall appears to be eroding.

Bill Pulte, the director of the Federal Housing Finance Agency, said on X that there is “momentum building” for Mr. Powell’s resignation, given the views of some Fed governors.

“It is clear that Powell’s political bias against our great President needs to be looked at,” Mr. Pulte posted.

Mr. Powell has brushed off questions about his status vis-a-vis Mr. Trump and its impact on markets, saying the open market committee is laser-focused on maintaining a “good, solid” economy with a strong labor market and price stability.

“That is what matters to us,” he said. “Pretty much, that’s all that matters to us.”