Jerome Powell’s Controversial Stance on Economic Growth

It’s a bit surprising to think that not long ago, Time magazine held Federal Reserve Chairman Jerome Powell in high regard, even considering him for their Person of the Year. Oddly enough, without Taylor Swift stealing the limelight, he might have ended up winning that accolade.

Powell has garnered admiration, especially from the left, mainly because he has often been a thorn in Donald Trump’s side. When Trump says “up,” Powell responds with a “down.”

Recently, after finally lowering the Federal Funds rate, Powell’s media remarks felt quite critical of Trump’s economic policies. He painted a rather grim picture, suggesting that this year’s economy might only grow by 1.6%, with a similar outlook for next year.

But really, which country was he referring to? It raises questions.

The reality is that in the second quarter, the U.S. economy actually grew by 3.3%, and early indicators for the third quarter suggest a 3% growth, according to projections from the Federal Reserve Bank of Atlanta.

Interestingly, Powell didn’t mention that, or the fact that real household income has risen by $1,100 in the first seven months of 2025. He also overlooked the surge in capital investments. There are hundreds of billions pledged for investment next year—essentially the foundation of a growing economy.

He critiqued Trump’s tariffs and more stringent immigration policies for hindering growth, which does make some sense, as they can slow things down. Yet, he neglected to acknowledge the effects of Trump’s tax cuts, immediate capital cost deductions that ignited an investment boom, or regulatory savings that might reach up to a trillion dollars this year. Additionally, he didn’t mention how U.S. production has surged due to Trump’s energy policies or the employment growth in specific sectors where it was previously stagnating.

It’s almost ironic that the Federal Reserve chair, who has overseen a 21% rise in inflation during Biden’s term—the highest we’ve seen in nearly four decades—still insists inflation is “temporary.” Tell that to the shoppers whose grocery bills have increased significantly.

Powell’s response to the economic lockdowns was to inject trillions into the economy in 2020 and 2021. The result? A noticeable decline in post-inflation income for Americans. It’s certainly true that many were unhappy with Biden and Harris, but here we are, still dealing with the ramifications of Powell’s actions.

Trump has criticized Powell by claiming he is “too late.” But perhaps it’s more accurate to say that Powell’s approach is fundamentally flawed. His role involves stabilizing the dollar’s value, but he seems to have followed misguided advice from numerous economists, compromising stability for ineffectiveness.

He indeed has a platform that should be used to address the alarming levels of government debt and deficits, yet he rarely takes that initiative.

Supporters of Powell often defend the Federal Reserve’s independence, which is important, yes. But we should also expect competence and accountability. Under Powell’s leadership, it appears that both are lacking. His inconsistent monetary policy has contributed to greater instability in the U.S. economy and its financial markets.

Powell’s conduct makes him seem like an advocate for rules-based monetary policies, perhaps even considering gold standards.

It might be time for Powell to acknowledge he’s in over his head to prevent further damage. Unfortunately, he seems caught in a narrative where he believes he’s the last bastion against Trump. The silver lining? His term may end in seven months, and hopefully, the next Fed chair will learn from his missteps.