Trump again calls for Fed to cut rates, says Powell’s ‘termination cannot come fast enough’

President Donald Trump once again criticized the Federal Reserve and hinted at the possibility of firing Chair Jerome Powell. In a recent post on Truth Social, Trump called out Powell for being “TOO LATE AND WRONG” in his decisions, particularly in comparison to the European Central Bank’s rate cuts. Trump emphasized the need for the Fed to lower interest rates to boost the economy, citing the decline in oil prices and grocery costs as indicators of the potential benefits.

Powell, on the other hand, recently spoke at the Economic Club of Chicago about the challenges posed by the administration’s tariffs on inflation and growth. His remarks led to a significant market sell-off, underscoring the impact of his statements on investor sentiment.

This is not the first time Trump has criticized Powell’s monetary policy decisions. In a previous post, Trump suggested that Powell should consider cutting interest rates to improve his image. However, Trump’s latest comments explicitly calling for Powell’s termination mark a new level of tension between the president and the Fed chair.

Despite Trump’s vocal criticism, Powell has emphasized that the president does not have the authority to remove him from his position, citing legal restrictions. Powell’s term as Fed chair is set to continue until May 2026, barring any unforeseen circumstances.

The ongoing clash between Trump and Powell underscores the challenges facing the Federal Reserve as it navigates economic uncertainties and policy decisions. Investors and markets will be closely monitoring developments to gauge the potential impact on monetary policy and the broader economy.