Trump calls on the Federal Reserve board to take full control of the central bank from Powell

WASHINGTON (AP) — President Donald Trump on Friday called for the Federal Reserve's board of governors to usurp the power of Fed Chair Jerome Powell, criticizing the head of the U.S. central bank for not cutting short-term interest rates.

Posting on his Truth Social platform, Trump called Powell “stubborn." The Fed chair has been subjected to vicious verbal attacks by the Republican president over several months.

The Fed has the responsibility of stabilizing prices and maximizing employment. Powell has held its benchmark rate for overnight loans constant this year, saying that Fed officials needed to see what impact Trump's massive tariffs had on inflation.

If Powell doesn't “substantially” lower rates, Trump posted, “THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”

Two of the seven Fed governors, Christopher Waller and Michelle Bowman, issued statements Friday saying they see the tariffs as having a one-time impact on prices and the job market as most likely softening. As a result, the two dissented at the Fed meeting on Wednesday and pushed for slight rate cuts relative to what Trump was seeking.

Even though Trump, who nominated Waller and Bowman, has claimed the U.S. economy is booming, he welcomed their arguments and what he called their strong dissents.

After the Fed announced later Friday that governor Adriana Kugler will step down next week, Trump said Powell should follow her lead and leave, too.

“She knew he was doing the wrong thing on Interest Rates. He should resign, also!” Trump said on social media.

Friday's jobs report showed a rapidly decelerating economy, as just 73,000 jobs were added in July and downward revisions brought down the June and May totals to 14,000 and 19,000, respectively.

Trump sees the rate cuts as leading to stronger growth and lower debt servicing costs for the federal government and homebuyers. The president argues there is virtually no inflation, even though the Fed's preferred measure is running at an annual rate of 2.6%, slightly higher than the Fed's 2% target.

Trump has called for slashing the Fed's benchmark rate by 3 percentage points, bringing it down dramatically from its current average of 4.33%. The risk is that a rate cut that large could cause more money to come into the economy than can be absorbed, possibly causing inflation to accelerate.

The Supreme Court suggested in a May ruling that Trump could not remove Powell for policy disagreements. This led the White House to investigate whether the Fed chair could be fired for cause because of the cost overruns in the Fed's $2.5 billion renovation projects.

Powell's term as chair ends in May 2026, at which point Trump can put his Senate-confirmed pick in the seat.

This story has been corrected to reflect that 14,000 jobs were created in June and 19,000 in May, not 19,000 in June and 14,000 in May.

Follow the AP's coverage of the Federal Reserve System at https://apnews.com/hub/federal-reserve-system.

Federal Reserve Chairman Jerome Powell, speaks during a news conference following the Federal Open Market Committee meeting, Wednesday, July 30, 2025, in Washington. (AP Photo/Manuel Balce Ceneta)

Federal Reserve Chairman Jerome Powell, speaks during a news conference following the Federal Open Market Committee meeting, Wednesday, July 30, 2025, in Washington. (AP Photo/Manuel Balce Ceneta)

Federal Reserve Chairman Jerome Powell, speaks during a news conference following the Federal Open Market Committee meeting, Wednesday, July 30, 2025, in Washington. (AP Photo/Manuel Balce Ceneta)

President Donald Trump, left, speaks with Federal Reserve Chairman Jerome Powell during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

President Donald Trump speaks as Federal Reserve Chairman Jerome Powell listens during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

NEW YORK (AP) — Bo Bichette and the New York Mets agreed Friday to a $126 million, three-year contract, two people familiar with the negotiations told The Associated Press.

The people spoke to the AP on condition of anonymity because the deal was subject to a successful physical.

The infielder Bichette can opt out after the first and second season. He would receive $47 million for one year and $89 million for two years, one of the people said.

The deal does not contain any deferred money and Bichette gets a full no-trade provision.

A two-time All-Star shortstop, Bichette hit 18 home runs and 94 RBIs for the Blue Jays in 2025. He homered off Shohei Ohtani in Game 7 of the World Series.

Bichette was injured last season in a Sept. 6 collision with Yankees catcher Austin Wells. It kept him out of the lineup until the World Series. He returned for Game 1 of the World Series against the Los Angeles Dodgers and played second base for the first time in six years.

Bichette finished second in the major leagues to Yankees slugger Aaron Judge with a .311 batting average this season, hitting 18 homers with 94 RBIs in 139 games.

He’s twice led the AL in hits.

Bichette turns 28 in March and had played his entire career with the Blue Jays since they drafted him in the second round of the 2018 draft. The son of former big leaguer Dante Bichette, Bo Bichette is a career .294 hitter with 111 home runs and 437 RBIs in 748 career games.

Bichette was one of the last remaining big name free agents after Kyle Tucker agreed to a $240 million, four-year contract with the Los Angeles Dodgers.

AP Baseball Writer Ronald Blum contributed to this report.

AP MLB: https://apnews.com/mlb

FILE - Toronto Blue Jays' Bo Bichette celebrates his three run home run against the Los Angeles Dodgers during the third inning in Game 7 of baseball's World Series, Saturday, Nov. 1, 2025, in Toronto. (AP Photo/Brynn Anderson, File)

FILE - New York Mets President of Baseball Operations David Stearns responds to questions during a news conference about MLB trade deadline deals, Tuesday, July 30, 2024, in New York. (AP Photo/Pamela Smith, File)