The failure to lower interest rates ignites "old grievances," Trump again criticizes Powell: Renovating corruption, dragging down the country

According to the Zhitong Finance APP, after the Federal Reserve refused to cut interest rates, U.S. President Donald Trump resumed his criticism of Federal Reserve Chairman Jerome Powell, ending a brief "truce" between the two. Trump posted on social media on Thursday: "Jerome Powell is back! He is not only slow to react but has actually become unfit to serve as Chairman of the Federal Reserve due to anger, stupidity, and excessive politicization."

This attack directly targeted the Federal Reserve's decision to maintain interest rates on Wednesday, while Trump also pointed his criticism at the renovation project of the Federal Reserve building, which has drawn strong dissatisfaction from the presidential camp due to cost overruns. Just a week prior, Powell had visited the construction site and attempted to downplay external doubts, but this move clearly failed to quell the controversy.

Trump further accused: "He has cost the nation trillions of dollars and has led one of the most incompetent and corrupt renovation projects in history! In short, 'too little, too late' is a complete failure, and we are all paying for it!"

It is noteworthy that although Federal Reserve officials maintained interest rates on Wednesday, they lowered their growth expectations for the U.S. economy, a change interpreted by the market as a signal that policymakers may be nearing a shift towards cutting rates.

In response, Treasury Secretary Scott Basset revealed on Thursday that the Trump administration expects to announce Powell's successor by the end of the year. He stated: "We are compiling a very strong list of candidates and are confident we will make an appointment by the end of the year." Basset specifically pointed out that although Powell's term as a governor may extend two years beyond the end of his chairmanship, "it is extremely rare for a chairman to be reappointed."

Basset also mentioned that there are differences of opinion within the Federal Reserve: the rare dissenting votes in Wednesday's decision and the addition of two more meetings to the board's schedule early next year. "For the first time in decades, we faced dissent in the initial two votes, indicating that there are cracks within the board." He hinted that the camp advocating for rate cuts may gain majority support, stating, "We will take control of the board."

Although Trump has previously vehemently criticized Chairman Powell for not being willing to cut rates significantly, after a rare presidential visit to the Federal Reserve headquarters to tour its renovation project, Trump seemed to temporarily ease his attacks on Powell. This visit was "unprecedented," as U.S. presidents rarely visit the Federal Reserve headquarters in person.

While the two stood side by side, seemingly easing tensions, Trump did not abandon his pressure on the Federal Reserve but instead adopted a "new weapon"—using the budget overruns of the renovation project as a new means to pressure Powell.

Just weeks before the visit, Trump had consulted with lawmakers about the possibility of firing Powell but later told the media that he had no intention of taking such action, suggesting he was willing to wait until Powell's term ends in May to make a decision.

In the face of the ongoing controversy, Powell emphasized at Wednesday's press conference that given the uncertainty surrounding the economic impact of the Trump administration's tariff policies, it is crucial for the Federal Reserve to maintain policy flexibility. His statement neither completely ruled out the possibility of a rate cut in September nor provided a clear timeline, demonstrating a cautiously balanced position