Senator Bernie Moreno called for Federal Reserve Chair Jerome Powell’s resignation after accusing him of costing taxpayers $400 billion annually by refusing to lower interest rates while displaying obvious political bias.
Key Takeaways
- Sen. Bernie Moreno confronted Fed Chair Powell for criticizing President Trump’s trade policies while remaining silent on Democratic policies contributing to inflation
- Moreno accused Powell of costing the government $400 billion annually by maintaining high interest rates
- Powell refused to acknowledge how Democratic policies like COVID lockdowns, vaccine mandates, and energy restrictions contributed to inflation
- The heated exchange highlighted Powell’s apparent double standard in commenting on Republican policies while claiming Democrat policies are “outside the Fed’s purview.”
- Moreno concluded his critique by suggesting Powell should resign for his detrimental impact on the economy
Moreno Exposes Powell’s Political Double Standard
During a contentious Senate Banking Committee hearing, Ohio Senator Bernie Moreno grilled Federal Reserve Chair Jerome Powell for what he characterized as blatant political bias in handling inflation and economic policy. Moreno highlighted how Powell had been quick to criticize President Trump’s trade policies but consistently refused to comment on the inflationary effects of Democrat-led initiatives. The sharp exchange revealed the growing frustration among conservatives with what they perceive as the Federal Reserve’s politically motivated economic management that has hurt American families while government spending continues unchecked.
Moreno pointed out Powell’s conspicuous silence on how Democratic policies such as pandemic lockdowns, vaccine mandates, and restrictions on energy production contributed to the inflation crisis. When pressed about these supply chain disruptions, Powell deflected, claiming such matters were “outside the Fed’s purview” – a stark contrast to his previous willingness to comment on Trump’s tariff policies. This selective approach to commentary reinforced the perception that Powell operates with a political agenda rather than maintaining the Federal Reserve’s supposed independence.
$400 Billion Annual Cost to Taxpayers
The most damning accusation from Senator Moreno centered on the financial burden Powell’s policies have placed on American taxpayers. “You’re costing the federal government $400 billion a year in interest payments because you won’t cut interest rates,” Moreno stated directly to Powell. This enormous sum represents money that could otherwise fund critical services or be returned to hardworking Americans. Instead, according to Moreno, it’s being wasted due to Powell’s refusal to lower interest rates despite clear evidence that the current economic situation warrants such action.
Moreno further challenged Powell on the equity of student loan forgiveness compared to other types of debt, highlighting the unfairness in government policy that favors certain groups over others. When pressed on this issue, Powell again declined to comment, reinforcing the pattern of selective engagement that characterized the entire hearing. The Ohio senator’s frustration was palpable as he confronted Powell with the real-world consequences of the Fed’s decisions on everyday Americans struggling with inflation and high interest rates.
Call for Resignation
The heated exchange culminated in Senator Moreno directly calling for Powell’s resignation. “You should resign,” Moreno declared, emphasizing that Powell’s tenure has resulted in significant financial harm to the nation. Moreno reminded Powell that his position exists to serve the American people, not personal or political interests. The challenge highlighted growing conservative concerns that unelected bureaucrats are making decisions with enormous economic consequences while remaining insulated from democratic accountability.
Powell defended himself by claiming he comments on inflation, not specifically on tariffs, and attempted to justify the Fed’s stance on interest rates. However, his explanations did little to address Moreno’s fundamental critique about the asymmetry in Powell’s willingness to weigh in on different administrations’ policies. The confrontation underscored the larger battle over economic policy as President Trump works to implement his agenda against resistance from entrenched Washington institutions.
