The debate over who understands and manages the economy better—Federal Reserve Chairman Jerome Powell or former President Donald Trump—is a heated one. While Trump has built a reputation as a business-savvy leader, Powell has demonstrated time and time again that he has the steady hand and expertise required to navigate the complexities of the $26 trillion U.S. economy.
Let’s break it down:
📈 Powell Raised Rates, Trump Raised Tempers
✅ Powell’s Monetary Policies:
Between 2022 and 2023, Powell increased interest rates despite criticism from Wall Street, Congress, and the White House.
By late 2023, the Fed cut rates to near-zero, launched emergency lending programs, and injected liquidity into struggling markets.
The result? Inflation dropped from a dangerous 9% in 2022 to 2.9% by January 2025.
❌ Trump’s Economic Complaints:
Trump criticized Powell and the Fed for high interest rates, even accusing them of “mishandling” inflation as recently as January 2025.
Ironically, Trump’s own 2017 Tax Cuts and Jobs Act and aggressive tariffs fueled the very inflation Powell had to clean up.
🔹 The Reality Check:
Trump’s corporate tax cuts (35% → 21%) gave businesses extra cash but also increased the deficit and triggered inflationary pressures. Now, with those tax cuts set to expire, Trump wants to extend them—potentially reigniting the same issues.
🌍 Trump’s Tariffs Made Noise, Powell’s Policies Made Progress
✅ Powell’s Approach:
Powell remained neutral in political disputes but actively worked to stabilize the economy.
He raised interest rates to counter inflationary pressures caused by Trump’s tariffs, ensuring long-term stability.
❌ Trump’s Trade War Fallout:
In 2018, Trump imposed tariffs on billions of dollars worth of Chinese goods to protect U.S. manufacturing.
Instead of helping, these policies led to retaliatory tariffs, supply chain disruptions, and higher consumer prices—worsening inflation.
Despite Powell’s attempts to correct the economic damage, Trump repeatedly blamed him publicly for