Jerome Powell firm amid White House pressure. At the Federal Reserve’s latest policy meeting on March 18, 2026, the central bank kept its benchmark interest rate unchanged, despite ongoing pressure from President Donald Trump to lower rates.
Powell made it clear that pressure from the White House was not changing the Fed’s approach. He said the central bank still has to focus on inflation, jobs, and the wider economy, not politics. Jerome Powell also refused to resign as the Chair of the Federal Reserve. “I have no intention of leaving the board until the investigation is well and truly over, with transparency and finality,” Powell said.
AP News reported that the Federal Reserve decided to keep interest rates as it is because inflation is still not fully under control. The broader economy continues to face uncertainty. Powell said the Fed is paying close attention to prices, especially since tariffs and higher energy costs can make inflation even worse.
BREAKING: In a stunning moment, Jerome Powell just directly blamed Donald Trump’s tariffs for causing inflation to skyrocket. Holy cow. pic.twitter.com/4cUViOQ8N7
— Democratic Wins Media (@DemocraticWins) March 18, 2026
“Let me say we’re well aware of the performance of inflation over the last few years and how a series of shocks have interrupted progress that we’ve made over time, and that happened most recently with tariffs, and now there will be some effects on inflation coming forward,” Powell said.
That stance put him directly at odds with President Donald Trump, who has been openly demanding lower borrowing costs for months. Trump argued that rates should come down now and attacked Powell personally, calling him incompetent and stubborn during remarks to reporters.
“He is under investigation because he is building a building … for hundreds of millions of dollars more than it’s supposed to cost. Now, I know it’s gross incompetence, because I happen to think he’s grossly incompetent,” Donald Trump told CNN. He continued, “Today, certainly, he should be lowering interest rates, alright, certainly, who would not lower them? But he’s stubborn, and he’s got Trump Derangement Syndrome.”
The disagreement has become more than just a policy fight. It has turned into a public power struggle between the president and the central bank chair.
“He should be lowering rates immediately, but he won’t do that because he’s he’s a stubborn, incompetent person, and that’s a bad thing,” Trump said before continuing, “You know, when you’re stubborn and incompetent, I think it’s the worst combination.”
Trump on Jerome Powell: He has Trump Derangement Syndrome. He’s a stubborn, incompetent person. And that’s a bad thing. The worst combination. And he’s also not a smart person. pic.twitter.com/nsNA2VMY7Q
— FactPost (@factpostnews) March 19, 2026
Jerome Powell also gave a second answer that matters just as much as the rate decision. He said he has “no intention” of leaving the Federal Reserve board until a Justice Department investigation into his congressional testimony is fully resolved. That probe centers on comments Powell made about the Fed’s building renovation.
Although a federal judge dismissed related DOJ subpoenas, the investigation continues to affect the selection of Powell’s successor. Trump has nominated former Fed official Kevin Warsh to replace Powell, but the confirmation process remains stalled due to the investigation.
According to AP News, Republican Senator Thom Tillis has said he will not move forward on any Fed nominee until the probe is dropped, which means Warsh’s path is blocked for now. Jerome Powell’s decision to stay put could give him more time in the role than Trump expected.
