Jerome Powell’s Perpetual Failures at the Fed: Trump’s Battle Against a Stubborn Bureaucrat and the Deep State Shackles

Yet, despite Trump’s frustration, Powell remains in place—why hasn’t Trump fired him, and can he even do so? This article delves into Powell’s failures, Trump’s justified demands, and the legal and political barriers protecting this unelected bureaucrat, all through the lens of conservative voices who see the Fed as another swamp creature needing drainage. Powell’s tenure at the Fed has been marked by one blunder after another, proving he’s almost always wrong when it matters most. Remember how the Fed under Powell was caught flat-footed on inflation? Back when Biden’s reckless spending ignited the fire, Powell dismissed it as “transitory,” a colossal miscalculation that allowed prices to skyrocket and hammer American families.

Even now, with Trump’s policies stabilizing the economy, Powell’s forecasting errors continue to put the Fed on the wrong side of history. As Lance Roberts noted in Newsmax, the Federal Reserve’s history of poor predictions often leads it to respond too late to economic shifts, exacerbating uncertainty. In May 2025, Powell admitted that economic uncertainty was “extremely elevated” and downside risks had increased, yet he dithered on rate cuts, leaving the economy in limbo. This isn’t new; Powell’s Fed has stumbled through tariffs and inflation, with his angst over Trump’s pro-America policies cramping decisions that could supercharge growth.

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Conservative economists have lambasted Powell for being perpetually behind the curve. In June 2025, wholesale inflation remained unchanged, defying economists’ predictions once again and underscoring how out of touch the Fed is under his leadership. Trump’s tariffs, which leftist critics swore would tank the economy, have instead proven them wrong as growth soars—but Powell’s refusal to adjust rates accordingly shows his bias against real conservative reforms. As the Washington Times reported, Americans will rue the day the Fed paused rate hikes prematurely, with Powell’s anchored inflation expectations failing to account for real-world pressures on consumers and investors.  Continued below this next clip

Jerome Powell is political operative. Just another weapon in the coup against Trump. He won’t cut rates because it’ll help Trump when it helps Americans. This mirrors his decision today even though all indicators are now in favor of a cut. Traitor.

Jerome Powell is political operative.

Just another weapon in the coup against Trump.

He won’t cut rates because it’ll help Trump when it helps Americans.

This mirrors his decision today even though all indicators are now in favor of a cut.

Traitor.pic.twitter.com/5Xz22qfBPK

— C3 (@C_3C_3) July 30, 2025

Even in good times, like the booming economy under Trump, strong data becomes bad news because it gives Powell an excuse to hold rates high, thwarting the president’s agenda. Powell’s indecision on tariffs, which he claims could push up prices while slowing growth, ignores how they’ve strengthened U.S. manufacturing and jobs. This pattern of wrong calls isn’t just incompetence; it’s a deliberate drag on Trump’s Make America Great Again economic miracle. President Trump has been crystal clear: he wants Powell to lower interest rates, and rightfully so. With the economy humming thanks to Trump’s tax cuts and tariffs, a big rate cut would be “rocket fuel” for even more growth, as Trump himself stated. Yet Powell stubbornly refuses, even as inflation cools and the labor market shows cracks that demand action.

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In June 2025, Trump slammed Powell for refusing to budge, handwriting a note calling him out for choking the housing market. Home sales dropped below expectations that month, with Trump pinpointing Powell’s high rates as the culprit stifling American dreams of homeownership. Trump’s housing chief ripped Powell for blowing millions on a Fed headquarters facelift amid a crisis he perpetuates, highlighting the chairman’s misplaced priorities. This defiance isn’t isolated. Trump has repeatedly attacked Powell for ignoring calls to slash rates, labeling him a “major loser” and “too late” on everything. In April 2025, Trump’s renewed assaults on Powell came as the chairman’s policies drove down the dollar and jacked up long-term rates, countering Trump’s tariff successes.

END THE FED pic.twitter.com/i6IWE8mmQB

— Derrick Evans (@DerrickEvans4WV) July 31, 2025

Even amid the coronavirus response years ago, Trump blasted Powell for slow action, a pattern that persists. Last week, as the Fed stood pat on rates despite Trump’s ramped-up pressure, Powell remained noncommittal on September cuts, defying the president’s vision for a trillion-dollar savings through lower rates. A key inflation gauge rose last month due to tariffs, but Powell used it as an excuse to hold steady, ignoring how Trump’s policies are taming broader inflation. Sen. Bernie Moreno, a Trump ally, called for Powell’s resignation, citing his lack of concern for inflation caused by Biden-era follies. Trump’s push is about unleashing prosperity, but Powell’s resistance smacks of deep state sabotage. So, why hasn’t Trump fired Powell? The answer lies in a web of legal protections, political calculations, and the Fed’s so-called “independence”—a euphemism for unaccountable power. Trump has mused about ousting Powell, but Republican senators have cautioned against it, warning it could shatter the Fed’s facade of neutrality and spark market chaos.

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In July 2025, Trump said it’s “highly unlikely” he’d fire Powell, despite the buzz, to avoid unnecessary turmoil. Former White House adviser Stephen Moore told Newsmax that Trump won’t pull the trigger, recognizing the risks. Powell’s term ends in May 2026, and Trump may prefer to wait, appointing a replacement naturally rather than fighting a messy battle. Politically, firing Powell could alienate moderates and invite leftist smears about authoritarianism, even though Trump appointed him initially. Markets bounced back after Trump affirmed he wouldn’t try, showing the volatility a firing might cause. Trump has called Powell “too stupid” to chair the Fed, but he knows excessive government spending, not Powell alone, fuels problems—better to end that than risk a firestorm. Trump’s continued demands make it harder for Powell to cut rates without appearing political, so restraint preserves leverage.

Can Trump fire Powell? It’s complicated, but legally, direct dismissal for policy disagreements is off-limits. The Supreme Court has signaled that Trump can’t fire him simply over rates, protecting the Fed’s independence. Powell himself insists Trump lacks the power, and there’s no precedent for removing a Fed chair from the board. However, workarounds exist: Trump could use the over-budget Fed renovation as grounds, accusing Powell of misrepresentation—a potential “cause” for removal. In May 2025, a Supreme Court ruling on independent agencies suggested limits, but conservatives noted the Fed’s unique status might allow flexibility. Trump has threatened it before, saying Powell would be “out of there” if unhappy, but backed off to avoid legal quagmires.