Forbes Critiques Powell on Tariff Focus

Steve Forbes, the editor-in-chief of Forbes and a prominent Republican figure, engaged in a tense discussion with Federal Reserve Chairman Jerome Powell on Fox Business’s “Kudlow.” Forbes urged Powell to concentrate on maintaining the “stable value of the dollar” rather than getting involved in tariff debates.

During the conversation, Powell suggested that the U.S. Central Bank would have likely reduced interest rates by now if not for the tariffs imposed by President Donald Trump, which impacted several countries. Forbes, reflecting on the situation, highlighted the views of notable Republicans like former Fed Governor Kevin Warsh and Trump’s primary economic advisor, Kevin Hassett, indicating their interest in Powell’s stance. Host Larry Kudlow probed Forbes for insights into possible alterations in the Fed’s approach.

“It’s essential to see if they can implement policies that genuinely benefit the economy,” Forbes commented. He emphasized the need for the Treasury Secretary to establish a solid intellectual foundation to critique the Fed’s current philosophy, which he described as fundamentally flawed.

Forbes continued, stating, “Prosperity does not lead to inflation,” and criticized the Fed’s tendencies toward anti-growth policies. He expressed that instead of trying to control economic dynamics—something he believes failed in the past—they should instead prioritize ensuring a stable dollar.

In light of Trump’s “liberation day,” Powell had earlier suggested there might be a short-term rise in prices due to tariff policies but acknowledged that the overall impact would depend on how significantly these changes unfold.

Reacting to Powell’s reservations, Trump claimed via social media that it would be an opportune moment for the Fed to lower rates. Despite Trump’s ongoing pressure for rate reductions, the Fed maintained its target range between 4.25% and 4.5% through its June meeting.

Forbes remarked, “The chair is preoccupied with tariffs, but the Fed can’t influence their effects. So, where does that leave us?” He questioned their intentions if they disapprove of tariff impacts—suggesting a concern that the Fed seems too focused on limiting economic growth instead of its core responsibility to uphold the dollar’s value.

Tensions between Powell and Trump escalated with speculation of Powell’s potential replacement, prompting Trump to call for Powell’s resignation. Recently, Trump reposted an article suggesting that Congress should investigate Powell, stating, “‘It’s too late for him; he should resign soon!!!'”