President Donald Trump is drawing criticism after blaming Joe Biden for appointing Jerome Powell as head of the Federal Reserve—despite the fact that Trump himself selected Powell for the role back in 2017.
During a July 16 meeting in the Oval Office, Trump blasted Powell as a “terrible Fed chair,” claiming he was surprised Biden had appointed and extended his tenure.
“He’s a terrible, terrible Fed chair,” Trump, 79, told reporters. “I was surprised he was appointed. I was surprised, frankly, that Biden put him in and extended him.”
While President Biden did renew Powell’s term in 2022, it was President Trump who first nominated Powell during his first term in office, replacing then-Chair Janet Yellen. At the time, Trump praised Powell’s “strength, smarts, and sound judgment” during a Rose Garden announcement on November 2, 2017.
“I have nominated [Powell] to be our next Federal Reserve chairman… he will provide exactly the type of leadership we need,” Trump said then. Powell went on to be confirmed in early 2018 by a broad bipartisan vote.
Now, nearly eight years later, Trump is reportedly seeking to oust Powell, prompting backlash from both parties and concerns over the political independence of the Federal Reserve.
The Federal Reserve has long been considered an institution designed to operate outside the political fray, focusing on maintaining economic stability. Sudden changes in leadership—especially for political reasons—can undermine confidence in U.S. markets, economists warn.
Even Republican lawmakers are pushing back. “The markets expect an independent central bank,” said Sen. Mike Rounds (R-SD). “If they thought for a minute that it wasn’t independent, it would cast a shadow over every economic decision.”
Trump’s main grievance appears to be Powell’s refusal to sharply cut interest rates—something Trump has pushed for amid slowing growth and continued trade tensions stemming from his second-term tariffs.
While Powell does chair the Federal Reserve Board, rate-setting decisions are made collectively by the Federal Open Market Committee, not by Powell alone.
Trump’s renewed attacks on Powell come amid broader economic concerns, as the U.S. faces market instability and rising costs related to Trump’s aggressive trade policies and recent spending bills. Despite the criticism, Powell remains in his post—for now.
