President Donald Trump appears determined to keep up pressure on Federal Reserve Chairman Jerome Powell, refusing to ease his public and private demands for interest rate cuts.
A new excerpt from Trillion Dollar Triage by Wall Street Journal reporter Nick Timiraos sheds light on Powell’s steadfast response to Trump’s attempts to interfere with the Fed’s independence—especially the president’s threats to fire him.
During a 2019 House Financial Services Committee hearing, Rep. Maxine Waters asked Powell directly how he would respond if Trump tried to remove him. “My answer would be ‘no,’” Powell said firmly, adding that he fully intended to serve out his four-year term.
Behind closed doors, Powell was even more resolute. “I will never, ever, ever leave this job voluntarily until my term ends under any circumstances. None, whatsoever,” he reportedly said, using a lifeboat metaphor to underscore his commitment. “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.”
Trump’s frustration with Powell stems largely from the Fed’s refusal to slash interest rates. The president claims rate cuts could save the U.S. “hundreds of billions of dollars,” but Powell has kept the key rate between 4.25% and 4.5%, citing a cautious approach amid Trump’s escalating trade tariffs.
This month, Trump announced sweeping new tariffs: 30% on imports from Mexico and the European Union, 50% on copper from Brazil, and 35% on Canadian goods. Tariffs on over 20 other countries are also scheduled to begin August 1.
Trump has also taken aim at Powell over the rising costs of renovations at the Federal Reserve’s Washington, D.C. headquarters. Powell defended the $2.5 billion project during Senate testimony, blaming the overruns on inflation and unforeseen construction issues—not luxury upgrades.
“There’s no new marble, no special elevators, no water features, no beehives, and no rooftop garden terraces,” Powell said, emphasizing that the renovation is being funded by the Fed, not taxpayers.