In a blistering public undressing that rattled diplomatic protocols, Donald Trump has branded Federal Reserve Chair Jerome Powell a “fool” and openly mused about terminating his tenure.

The attack, delivered Monday during a high-profile press conference with Israeli Prime Minister Benjamin Netanyahu, marks a significant escalation in the rift between the White House and the world’s most powerful central bank. Trump explicitly suggested he would “love to fire” the man responsible for steering the US economy, threatening a lawsuit for what he termed “gross incompetence.”

While the drama unfolded in Washington, the shockwaves are financial, not just political. For Kenyans watching the shilling, an unstable US Federal Reserve threatens to disrupt the delicate exchange rates that determine the price of fuel, electricity, and imported grain.

A Multi-Billion Shilling Dispute

The President’s grievance centered on a specific, contested figure regarding the renovation of the Federal Reserve’s headquarters. Turning to Netanyahu, Trump repeated a claim he has circulated for months, alleging fiscal irresponsibility.

“Bibi, he’s up to $4.1 billion (approx. KES 533 billion) to do a renovation of a few small buildings,” Trump alleged.

However, this figure appears to be significantly inflated. Powell has previously corrected the record on camera, noting the actual budget stands at $2.5 billion (approx. KES 325 billion)—a difference of over KES 200 billion. Despite the correction, Trump utilized the higher figure to paint a picture of a central bank run amok.

• The Claim: Renovation costs of $4.1 billion (KES 533bn).
• The Reality: Official budget is $2.5 billion (KES 325bn).
• The Threat: Potential legal action for “gross incompetence.”

Selective Memory on Appointments

In a twist of political irony, Trump laid the blame for Powell’s presence squarely at the feet of his predecessor. “I mean, Biden reappointed him. It’s too bad. You would have thought he wouldn’t have done that,” Trump remarked.

This statement omits a critical historical fact: it was Trump himself who first elevated Powell to the Chairmanship in 2018, breaking with tradition to replace Janet Yellen. Analysts note that this selective memory serves a political purpose, distancing the administration from economic policies it now finds inconvenient.

Trump boasted of the US economy's strength but qualified his praise, insisting success was happening “despite the fact that we have a fool at the Federal Reserve.”

As global markets digest the hostility, the independence of the US central bank hangs in the balance—a precarious reality for emerging economies like Kenya that rely on a stable dollar to keep debt service costs manageable.