Jerome Powell’s time running the Federal Reserve started off like a success story. He came across as calm, reasonable, and steady—the kind of leader who could steer the U.S. economy through chaos. For a while, it worked. Markets trusted him, politicians praised him, and even regular Americans felt like someone competent was in charge. But over the years, that image fell apart. The guy who once looked like the voice of reason became the one everyone blamed when things started breaking down.
Powell’s early moves during the pandemic earned him a lot of credit. He cut rates fast, flooded the system with money, and helped keep the economy from falling off a cliff. It was bold and effective, at least at first. But then came the inflation wave. For months, Powell downplayed it, calling it “transitory.” That word ended up haunting him. Prices kept climbing, wages couldn’t keep up, and people started realizing the Fed had misread the situation completely. By the time Powell admitted inflation wasn’t temporary, the damage was done.
When he finally acted, he went hard. The Fed launched one of the fastest rate-hike cycles in history, and it hit the economy like a hammer. Mortgage rates doubled, small businesses struggled to borrow, and ordinary people felt squeezed from every side. Investors stopped trusting what Powell said because his message kept shifting. One week he sounded cautious, the next he was pushing rates higher. The Fed’s credibility—something it relies on more than anything—took a major hit.
Politically, Powell couldn’t win either. The left accused him of crushing working people just as wages were starting to rise, while the right said he let inflation get completely out of control in the first place. When both sides of the aisle are mad at you for opposite reasons, your time’s up. His reputation as the steady hand of the Fed turned into that of a man reacting to chaos he partly caused.
Now, as Powell’s tenure winds down, his legacy looks messy at best. He’ll be remembered as the Fed chair who waited too long to act, then slammed the brakes too hard. What started as a reign of confidence has ended in confusion. His fall isn’t just about one man—it’s about the loss of faith in the idea that the Fed can perfectly balance everything. The economy has moved on, and Powell’s time at the top has clearly run its course.