Scoop: MAGA's new attack on the Fed
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Bernie Moreno (R-Ohio) at the White House on April 2. Photo: Andrew Harnik/Getty Images
Sen. Bernie Moreno (R-Ohio) is providing some supporting Senate fire in President Trump's unrelenting assault on Fed Chair Jerome Powell.
Why it matters: Senate Republicans have largely defended Powell in the face of Trump's attacks and guarded the Fed's independence. But Moreno is sending a clear signal that tariffs and interest rates will be part of the conversation for whoever succeeds Powell at the Fed.
- For months, Trump has been badgering Powell to cut interest rates faster, and Wednesday he called him "stupid." Trump appointed Powell in his first term.
Driving the news: The Fed on Wednesday left interest rates unchanged for the fourth straight meeting, with Powell citing concerns Trump's tariffs could lead to higher inflation this summer.
That set Moreno off.
- "I write to express serious concern with the Federal Open Market Committee's (FOMC) decision-making process that led to today's announcement that interest rates would remain unchanged," Moreno wrote to Powell on Wednesday, in a letter obtained by Axios.
- "The Fed appears to be giving credence to economists' latest anti-tariff argument," he wrote. "After raising inflation expectations with fearmongering, the Fed uses this as justification for not cutting rates."
- "This circular logic is intellectually dishonest."
Zoom out: Unlike any president before him, Trump has gone to remarkable lengths to publicly humiliate the Fed chair, as he tries to convince him to lower interest rates, which Trump wants to boost the economy and lower interest payments on the debt.
- But after initially scaring the markets about a potential midnight firing, Trump's tantrums over the Fed appear to be more for show than substance.
- In April, Trump said he had "no intention" of firing Powell, a pledge he repeated last week.
Zoom in: Senate Republicans, for the most part, have ridden to Powell's defense, with Sen. John Kennedy (R-La.) saying in April that Powell has "tiger blood."
- "He's going to do what he thinks is right," Kennedy said.
- Last year, Sen. Bill Haggerty (R-Tenn.) told Powell in a hearing that "the credibility of the [Federal Reserve] depends on you remaining data driven."
- "The credibility of our currency as the reserve currency of the world depends on that," he said.
The bottom line: Powell's term ends in May of 2026 and Trump said last week he plans to name his successor "very soon."
- The Senate banking committee, including Moreno, will play a key role in vetting Trump's next nominee for the Fed.
