President Donald Trump launched his most blistering attack yet on Federal Reserve Chair Jerome Powell, branding him a "total loser" who is "costing our country trillions of dollars" after the Fed held interest rates steady at Wednesday's FOMC meeting.
"Jerome 'Too Late' Powell has done it again!!! He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair," Trump posted on Truth Social Thursday morning. "He is costing our Country TRILLIONS OF DOLLARS."
The unprecedented personal assault on a sitting Fed Chair escalates beyond typical presidential criticism into uncharted territory. Trump didn't stop there, adding that Powell is "a TOTAL LOSER, and our Country is paying the price!"
Markets React as Political Pressure Intensifies
The attacks come as cryptocurrency markets showed resilience despite the Fed's decision to maintain the federal funds rate at 4.25-4.50%. Bitcoin (BTC) held above $118,000 while Ethereum (ETH) pushed toward $3,900, suggesting traders may be betting on eventual policy changes.
During Powell's Wednesday press conference, the Fed Chair maintained his position that "inflation remains somewhat above 2%" and warned that "increased tariffs are pushing up prices in some categories of goods." This direct reference to Trump's trade policies appears to have triggered the president's fury.
"We have made no decisions about September," Powell stated when pressed about future rate cuts, effectively pushing back against market expectations for monetary easing.
Strategic Bitcoin Reserve Gains Momentum
Ironically, as Trump feuded with Powell, his administration made significant crypto policy advances. White House Digital Asset Director Bo Hines confirmed that the Strategic Bitcoin Reserve is "well underway" and investors will be "very pleased."
"We understand the importance of this Strategic Bitcoin Reserve," Hines told reporters. "We do believe in accumulation." The comments sent crypto markets higher as institutional investors positioned for potential government Bitcoin purchases.
- Treasury Secretary Scott Bessent released a "Crypto, Welcome Home" video showcasing administration support
- The White House published a 166-page digital assets report mentioning Bitcoin's creator Satoshi Nakamoto
- SEC Chair Paul Atkins declared America must "lead the crypto asset revolution"
- Multiple agencies coordinated to remove regulatory roadblocks for digital assets
Fed Independence Under Siege
Trump's attacks represent the most direct presidential assault on Fed independence since the 1970s. Unlike previous presidents who occasionally criticized rate decisions, Trump's language questions Powell's basic competence and mental fitness.
The timing appears strategic. With crypto-friendly policies advancing rapidly across government agencies, Trump may be positioning Powell as the lone obstacle to his economic agenda. "If our Country was not able to protect itself by using TARIFFS AGAINST TARIFFS, WE WOULD BE 'DEAD,'" Trump posted, framing Fed policy as existential.
Market analysts note that Powell's term doesn't expire until 2026, creating a potential two-year standoff. However, Trump's previous statements suggest he believes Powell will eventually "do the right thing" and cut rates in September.
Crypto Community Rallies Behind Trump
The crypto community largely sided with Trump's criticism, viewing Powell's stance as unnecessarily hawkish given current economic conditions. "Number go up. It's science," posted prominent crypto influencer ZssBecker, echoing widespread sentiment that rate cuts would benefit digital assets.
Major crypto figures pointed out the irony of Powell calling inflation "elevated" at 2.0% after previously dismissing 9% inflation as "transitory." This perceived inconsistency has fueled accusations that Fed policy lacks coherent principles.
As corporate Bitcoin adoption accelerates and institutional ETH purchases surge past $10 billion, the crypto sector appears confident that monetary policy will eventually align with digital asset growth. Whether that happens through Powell's conversion or replacement remains the trillion-dollar question driving markets forward.
