01.08.202511:00 Forex Analysis & Reviews: Trump Resumes Criticism of Federal Reserve Chair Jerome Powell

This is not the first time the president has lashed out at the head of the Federal Reserve. Trump has repeatedly voiced dissatisfaction with the Fed's policy, accusing Powell of deliberately holding back economic growth. According to Trump, lower interest rates could stimulate the economy and boost his reelection prospects.

Trump also criticized Powell over the Federal Reserve's renovation project, which has faced scrutiny from the president and his allies due to significant cost overruns—just one week after Trump visited the facility and acknowledged concerns about the ongoing work. He also restated his objections to the Fed's high interest rate policy, arguing that it increases the government's interest payments on the national debt. Trump claimed that Powell's actions are resulting in substantial financial costs for the country and described the renovation project as poorly managed.

The remarks came after Fed officials on Wednesday left interest rates unchanged but downgraded their economic outlook for the U.S., signaling that policymakers may be moving closer to cutting borrowing costs.

Treasury Secretary Scott Bessent said Thursday that Trump is expected to announce Powell's replacement by the end of the year. "We're putting together a very strong list of candidates," he said. "I expect we'll be able to announce it by year-end." Bessent also noted that while Powell could remain on the Board of Governors for two more years after his term as chair expires, it would be highly unusual for a former chair to do so. The Treasury Secretary expressed disagreement with the Fed's decision on Wednesday.

In recent days, Trump appeared to soften his attacks on Powell after a rare—and largely unprecedented—visit by the sitting president to the central bank's headquarters to inspect the renovation project, during which he stood alongside the Fed chair. While Trump has long criticized Powell over the Fed's interest rate policy, the renovation project has given the president's allies a new point of leverage to ramp up pressure on the chair. Nevertheless, it seems Trump was expecting a more dovish tone from Powell on Wednesday—hinting at a possible rate cut in September. When that did not materialize, the fragile truce appeared to collapse once again.

As for the current technical outlook for EUR/USD, buyers now need to focus on reclaiming the 1.1460 level. Only then will it be possible to target a test of 1.1500. From there, the path toward 1.1535 opens up, though reaching it without support from large players could prove difficult. The furthest upside target is the 1.1570 high. In case of a decline, significant buyer activity is only expected near 1.1410. If there is no interest at that level, it would be advisable to wait for a retest of the 1.1370 low or consider long positions from 1.1345.

Regarding the technical picture for GBP/USD, pound buyers need to break above the nearest resistance at 1.3230. Only then can they aim for 1.3270, although breaking through this level will be quite challenging. The most distant upward target lies at 1.3310. If the pair falls, the bears will likely attempt to regain control of the 1.3180 level. A successful break below that range would deal a significant blow to bullish positions and push GBP/USD toward the 1.3126 low, with the potential to extend losses to 1.3080.