In an explosive turn of events, the Office of Management and Budget Director has publicly accused Federal Reserve Chairman Jerome Powell of “grossly mismanaging” the Fed, igniting a firestorm of controversy that threatens to reshape U.S. economic policy. The scathing remarks come as President Trump escalates his attacks on Powell, demanding a reduction in interest rates and hinting at a potential ousting of the Fed chair amid growing tensions over tariffs and economic strategy.

This unprecedented public critique from a high-ranking federal official highlights a brewing conflict within the Trump administration, particularly as the White House prepares to impose a staggering 50% tariff on Brazil in retaliation for perceived injustices against former Brazilian President Jair Bolsonaro. As letters notifying countries of new tariffs flood out, concerns mount over inflationary pressures and the Fed’s response to an uncertain economic landscape.

Powell’s steadfast refusal to lower interest rates, even in the face of mounting political pressure, raises questions about the Fed’s independence and its ability to navigate this economic minefield. In a shocking revelation, the OMB Director pointed out that the Fed is running a deficit for the first time in its history, with extravagant renovations to its headquarters ballooning costs to nearly $2.5 billion—$700 million over budget. This opulent spending, including luxury features like VIP elevators and rooftop gardens, has drawn ire from lawmakers who believe Powell’s leadership is undermining the credibility of the central bank.

As calls for Powell’s resignation intensify, the implications of this internal strife could reverberate throughout the global economy. With the Fed’s credibility on the line and inflation still above target, the stakes have never been higher. Will Powell withstand the mounting pressure, or will the Trump administration succeed in reshaping the future of the Federal Reserve? Only time will tell, but one thing is clear: the battle for economic control is heating up, and the consequences could be monumental.