On Thursday, September 11, 2025, former President Donald Trump sharply criticized Federal Reserve Chair Jerome Powell and called for an immediate cut in interest rates, citing disappointing U.S. labor market data. Trump’s renewed attack comes amid ongoing efforts to influence the Federal Reserve’s monetary policy and reshape its leadership.
Trump’s public demands for rate cuts intensified following the release of weak employment figures, which he blamed on Powell’s handling of monetary policy. Trump described Powell as "slow" and "incompetent," urging the Fed to lower rates promptly to stimulate economic growth. These comments were reported by Business Upturn on the same day.
Meanwhile, political maneuvers to reshape the Federal Reserve continued in Washington, D.C. On Wednesday, September 10, 2025, the Senate Banking Committee approved the nomination of Stephen Miran, a top White House economic adviser and Trump’s nominee, to the Federal Reserve Board of Governors. This approval sets the stage for a likely full Senate confirmation, which would make Miran the third Trump appointee on the seven-member board. Miran was nominated to fill the seat vacated by former Fed Governor Adriana Kugler, who stepped down on August 1, 2025. The Washington Post reported the committee’s approval and noted concerns from some lawmakers about Miran’s commitment to the Fed’s independence.
In a related development, a U.S. federal court temporarily blocked President Trump’s attempt to remove Fed Governor Lisa Cook, who was appointed by President Biden in 2022. The court issued a preliminary injunction on September 9-10, 2025, ruling that Trump had not provided a legally permissible cause for her dismissal, as federal law restricts firing Fed governors "for cause" related to misconduct. Cook challenged the removal attempt, calling it "unprecedented and illegal." Reuters and Al Jazeera covered the court’s decision and the Trump administration’s swift appeal of the ruling.
These events underscore escalating political pressure on the Federal Reserve, an institution traditionally regarded as independent from executive influence. The White House’s push to install aligned members on the Fed’s board and public demands for rate cuts have raised concerns among economists and lawmakers about the potential erosion of the Fed’s autonomy. Over 450 economists, including Nobel laureates, have publicly defended the Fed’s independence amid these tensions.
The Federal Reserve is scheduled to hold its next monetary policy meeting on September 16-17, 2025, where it is widely expected to consider cutting interest rates for the first time since December. The political dynamics surrounding the Fed’s leadership and policy decisions remain a focal point of national economic discourse.
All these developments are taking place in Washington, D.C., the seat of the U.S. federal government, where the Federal Reserve Board is headquartered and where Senate confirmation hearings occur.
