Trump tariffs or Powell policy? Who’s to blame for high rates: Bias Breakdown

There is growing tension between President Donald Trump and Federal Reserve Chair Jerome Powell over the future of interest rates. Trump is publicly urging the Fed to cut rates this month, while Powell maintains that the central bank should hold steady for now.

“We should be two points lower. Two and a half would be nice,” Trump said during a White House event in June.

“As long as the U.S. economy is in solid shape, we think the prudent thing to do is to wait and learn more,” Powell said at a European Central Bank conference July 1. 

Powell vs. Trump arguments

Fed Chair Jerome Powell has pointed to the impact of Trump’s trade policies — specifically tariffs — as a key reason for holding off on further rate cuts.

“We went on hold when we saw the size of the tariffs, and economic forecasts went up materially as a consequence of the tariffs,” Powell said. When asked at the conference whether Trump’s tariffs were the reason rates haven’t come down, Powell responded, “That’s right.”

Trump, on the other hand, has sharply criticized Powell’s approach, accusing him of being politically motivated. 

“We’re paying more right now because we have a guy who suffers from, I think, Trump Derangement Syndrome,” Trump said. In another media remark, he added, “We have a guy that’s just a stubborn mule, and a stupid person that is making a big mistake.”

The disagreement has become a flashpoint in political media, with left- and right-leaning outlets largely aligning with the Federal Reserve or Trump, respectively. Coverage often features analysts and economists who reinforce each side’s narrative, with left-leaning networks emphasizing the role of Trump’s tariff policies in keeping rates elevated and right-leaning outlets placing blame on Powell and the Federal Reserve’s decision-making.

What right-leaning networks are saying

“We hear all of this policy criticism from Powell now, and we didn’t hear much of it when Biden was spending money like a drunken sailor,” a Fox Business Network analyst said. “It does seem like he’s playing favorites.”

“The Fed’s logic is falling apart when you look at the data because we are seeing tariff revenue but not seeing it rise inflation,” Independent Institute senior fellow Judy Shelton said on Fox Business Network.

“With all of these good inflation numbers coming down, the tariff inflation is missing in action,” Larry Kudlow, former director of the National Economic Council and Fox Business Network host, said. “The target rate is now over 2 percentage points above the inflation rate, so I’m trying to figure out the Fed’s argument.”

What left-leaning networks are saying

“We know why the Fed is not cutting interest rates,” economics reporter for Axios, Courtenay Brown, said on MSNBC. “Jerome Powell all but said last week that they would be cutting rates if not for the trade war that’s created all of this uncertainty.”

“Let’s understand what Powell did wrong,” Jason Furman, former chairman of the Council of Economic Advisers, said on MSNBC. “He stated the obvious. He said something every economist is saying, which is these tariffs are going to cause higher inflation and higher unemployment.”   

“The mere thought that you’re going to make trouble for the Fed, you’re going to put political pressure, you’re going to undermine its credibility,” Richard Quest, CNN Business Anchor, said of Trump’s rhetoric against Powell. “It’s very damaging.”

Media analysis or media advocacy?

While both political parties support the idea of lowering interest rates, they remain sharply divided over why rates remain elevated. 

Trump argues that current economic strength warrants immediate cuts, while Powell points to uncertainty driven by trade policies — especially tariffs — as justification for a more cautious approach. 

Media coverage has largely reflected this divide, with partisan outlets often amplifying just one side of the debate rather than presenting a balanced view of the broader policy discussion.