Jerome Powell knew the summer hearings would not be easy. Minutes before his testimony, he sat still in the chamber, staring straight ahead, preparing for the barrage. It did not take long. Ohio Senator Bernie Moreno, a Trump ally, accused him of partisanship for comments about tariffs and inflation.
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“I don’t comment on tariffs at all, actually,” Powell shot back. “I comment only on inflation.” The exchange barely slowed Moreno, who finished with a jab and said, “We got elected by millions of voters. You got elected by one person, and he doesn’t want you to be in that job.” Powell raised an eyebrow, switched off his mic, and turned calmly to the next questioner.
It’s a Pressure Campaign like No Other
For Powell, this has become routine. Every morning begins with a fresh wave of attacks, led by President Trump, who insists inflation is beaten and demands immediate rate cuts. Trump has called Powell a “knucklehead” and a “moron,” remarkable insults for the man he himself nominated in 2017.
The political theater escalated in bizarre fashion last month when Trump dragged Powell to a Fed construction site. Wearing hard hats, the president confronted him on camera about rising renovation costs. Powell pointed out calmly that Trump’s staff had slipped in a third building that was already complete. The clash was awkward, but Trump later claimed, “There was no tension.”
Trump Expands His Targets
The president has widened his attacks beyond Powell. This week he demanded the resignation of Fed governor Lisa Cook, citing mortgage fraud allegations. “I have no intention of being bullied to step down from my position,” Cook replied, vowing to answer questions with facts. Trump’s aides say he is weighing her removal, which would give him yet another opening on the board.
Essentially, Trump wants to reshape the Fed to his liking before Powell’s term expires. With two of Trump’s appointees, Christopher Waller and Michelle Bowman, already pushing for rate cuts, the pressure inside the Fed is mounting as well.
Powell Holds His Ground
Despite the constant fire, Powell appears unshaken. At 72, he keeps a rigid routine of swimming and training to stay in what he calls the best shape of his life. Friends say his focus has narrowed to a single mission, which is preserving the Fed’s independence. “I think it is no more subtle than he wakes up every day and probably goes to bed every night thinking, ‘What can I do to preserve the institution?’” said Richard Clarida, his former deputy.
Privately, Powell has admitted the stress sometimes wakes him at night, but he finds strength in quiet support from lawmakers, bankers, and even strangers who thank him in airports. “He has a really strong sense of what he’s doing there and why,” said Jon Faust, a longtime adviser.
Powell Has to Tackle a Fragile Economy
Politics aside, Powell faces an economy that offers no easy answers. Inflation has hovered above target for four years, recently ticking back up toward 3%. Payroll growth has slowed, and the unemployment rate is holding near 4.2%. Tariffs, immigration curbs, and federal job cuts complicate the picture.
Inside the Fed, the debate rages. Waller warns job growth is weaker than it looks. Bowman says Fed decisions have been inconsistent. Hawks like Kansas City Fed’s Jeff Schmid argue that holding firm on rates has prevented tariffs from fueling runaway prices. Others, like San Francisco’s Mary Daly, see the labor market softening. Minneapolis Fed President Neel Kashkari has floated the idea of cutting now and reversing later if inflation resurges.
The divisions show just how delicate Powell’s role has become. He must guide the Fed between conflicting data, political attacks, and internal splits. His upcoming remarks at Jackson Hole will be parsed for signs of where the institution leans, toward caution, or toward giving in to the pressure for cuts.
Powell told senators this summer that his only goal is to leave the economy stable for his successor, adding “I want to turn it over to my successor in that condition. That’s the only thing I think about.”
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