On Truth Social, Trump accused Powell of doing a “terrible and incompetent” job in renovating Fed buildings. He also claimed Powell committed perjury in this matter, adding that the Justice Department has made similar allegations. This further increased the political pressure on the Fed Chair. 

Last month, Trump visited the Federal Reserve to inspect the ongoing renovation projects. During his visit, he urged Powell to lower interest rates. The president stressed that the Fed was too late in taking action, causing significant harm to the U.S. economy. 

CPI Data and Tariff Debate 

Trump’s comments came after the release of July’s U.S. Consumer Price Index (CPI) data. The report showed annual inflation at 2.7%, below the expected 2.8%, while monthly CPI fell from 0.3% to 0.2%. These results reinforced Trump’s view that tariffs had a limited impact on inflation. 

The president stated that tariffs brought large sums of money into the U.S. and that consumers did not bear the costs. Moreover, he argued that tariffs did not create price pressures as the Fed had anticipated. Powell, however, maintained that the best approach was to wait and assess the tariffs’ effects before making a rate cut decision. 

Stephen Miran, Trump’s nominee for the Fed Board of Governors, also commented positively on the CPI data. Miran said inflation was “performing well” and that there was no evidence of tariff-driven price increases. He also noted that since Trump took office, annual CPI inflation had averaged 1.9%. 

These developments indicate that the tension between the Fed and the White House over interest rate policy is set to continue. 

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