Trump says he’s eager for Fed Chair Jerome Powell’s ‘termination’
President Donald Trump has once again come out swinging against Federal Reserve Chair Jerome Powell, calling for lower interest rates and suggesting that Powell’s “termination cannot come soon enough.” Trump’s comments have once again raised questions about the relationship between the White House and the independent central bank.
It remains unclear whether Trump’s remarks signify a desire to remove Powell from his position or simply an eagerness for the end of Powell’s term in 2026. The Federal Reserve, established by Congress, is meant to operate independently of political influence.
The latest round of criticism from Trump comes on the heels of Powell expressing concerns about the impact of Trump’s tariff policies on inflation and economic growth. Powell suggested that the Fed may exercise caution in adjusting interest rates as they monitor the effects of the tariffs on the economy.
In a tweet on Truth Social, Trump lambasted Powell for being “TOO LATE AND WRONG” and called his recent report a “mess.” Trump urged Powell to “certainly lower” interest rates, continuing his pattern of publicly criticizing the Fed chair.
This is not the first time Trump has clashed with Powell over monetary policy. Since taking office, Trump has repeatedly called for interest rate cuts, despite the traditional norm of allowing the Fed to operate independently.
Powell’s recent warnings about the potential for “stagflation,” a combination of rising inflation and economic stagnation, have added fuel to the fire. Economists have cautioned that the Fed faces a delicate balancing act in responding to tariff-induced inflation without stifling economic growth.
The ongoing tension between Trump and Powell highlights the challenges of maintaining the Fed’s independence in the face of political pressure. While the president has the authority to remove a Federal Reserve governor for cause, legal experts suggest that policy disagreements are unlikely to meet the threshold for removal.
As the Fed navigates the complexities of monetary policy in a volatile economic environment, the spotlight remains on the delicate dance between the central bank and the White House. Powell’s steadfast commitment to the Fed’s independence underscores the importance of shielding monetary policy from political interference.
