Trump: Fed Chair ‘Powell’s Termination Cannot Come Fast Enough’/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump harshly criticized Federal Reserve Chair Jerome Powell, saying his removal “cannot come fast enough” due to frustration over interest rate decisions. The comments came after Powell said the Fed needs more clarity on the economic impact of Trump’s tariffs. Powell defended Fed independence, saying political pressure will not influence monetary policy.
Trump vs. Powell – Quick Looks
- Trump says Federal Reserve Chair Jerome Powell should be terminated.
- Powell insists the Fed will not be influenced by political pressure.
- Trump frustrated by Fed’s reluctance to cut interest rates aggressively.
- Powell says Trump’s tariffs have added uncertainty to economic forecasts.
- The Fed chair’s term doesn’t expire until 2026.
- Powell says Fed independence is protected by law.
- Trump contrasts Powell’s policies with European Central Bank’s rate cuts.
- Biden reappointed Powell for a second term in 2022.
- Trump originally nominated Powell to lead the Fed in 2017.
- Fed decisions remain focused on economic fundamentals, Powell insists.
Trump Calls for Powell’s Removal After Fed Chair Declines to Cut Interest Rates
Deep Look
Washington (AP) – President Donald Trump launched another blistering attack on Federal Reserve Chair Jerome Powell on Thursday, signaling growing tensions between the White House and the central bank amid economic uncertainty sparked by recent trade and monetary policies.
In a sharply worded social media post, Trump said Powell’s “termination cannot come fast enough,” expressing deep frustration with the Fed’s decision to hold interest rates steady despite market volatility and a shifting global economic landscape.
“Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” Trump wrote. “Powell should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.”
Fed Remains Cautious Amid Economic Uncertainty
The president’s comments came just one day after Powell delivered remarks to the Economic Club of Chicago, where he emphasized that the Federal Reserve needs more clarity on the long-term effects of recent Trump administration policies, including tariffs, regulatory rollbacks, and immigration reforms, before adjusting interest rates.
“For the time being, we are well positioned to wait for greater clarity,” Powell said, referencing the uncertain impact of current economic conditions.
While Trump believes the U.S. economy can withstand lower rates, the Fed has remained cautious, noting that broad-based tariffs announced earlier this month—and then temporarily paused—have introduced volatility and complicated economic forecasting.
Fed Independence Defended
“We’re never going to be influenced by any political pressure,” Powell said. “People can say whatever they want. That’s fine, that’s not a problem. But we will do what we do strictly without consideration of political or any other extraneous factors.”
Powell also emphasized that Federal Reserve leadership cannot be removed without cause, saying that independence is enshrined in law and enjoys broad bipartisan support.
“Our independence is a matter of law. We’re not removable except for cause,” he explained. “We serve very long terms… Fed independence has pretty broad support across both political parties.”
Can Trump Remove Powell?
Despite Trump’s public calls for Powell’s termination, legal and constitutional experts widely agree that the president cannot fire the Fed chair at will. Powell’s current term, which began under President Joe Biden’s reappointment in 2022, runs through 2026.
Powell was originally nominated by President Trump in 2017 to succeed Janet Yellen, but relations between the two have soured, especially after Powell opted not to follow Trump’s preferred monetary strategy.
At a November 2024 press conference, Powell stated clearly that he would not resign if asked and would serve his full term unless removed for cause.
A Divided Economic Outlook
Trump’s ire toward Powell stems from a broader philosophical clash over the direction of U.S. monetary policy. The president has touted his tariff strategy as a path to economic strength and national wealth, whereas Powell and other Fed officials have voiced concern about potential side effects, including higher inflation and slower GDP growth.
The Fed’s 19-member policy committee remains divided on the best path forward. While some officials suggest rate cuts may be needed if growth slows, others argue that inflationary pressures from tariffs warrant a cautious approach.
The central bank’s most recent statements show a preference for monitoring economic data closely rather than reacting quickly to political narratives.
The Broader Political Implications
Trump’s attack on Powell adds another layer to the administration’s complex economic messaging as it heads into the 2025 budget cycle and further trade negotiations. By targeting the Fed, Trump may be seeking to shift blame for potential economic downturns or inflation spikes as a result of his own trade actions.
With Powell remaining firm on independence, the clash is unlikely to result in policy change—at least in the short term. But it may shape investor confidence and political dynamics heading into another volatile economic quarter.
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