President Trump sharply criticized Federal Reserve Chairman Jerome Powell on Thursday, saying, “Powell’s firing can’t be quick enough!”
The president once again signaled his dissatisfaction with the Fed’s careful approach to cutting interest rates.
Trump’s anger was sparked by a statement made by Powell on Wednesday.
Powell warned that tariffs were creating a “challenging scenario” for the Fed. It could complicate the dual central bank assignment to maintain stable inflation and robust employment.
Powell emphasized the importance of patience as it relates to central bank monetary policy, noting that the Fed needs a clearer signal on Trump’s trade strategy before deciding on future fee adjustments.
His comments show a relatively high threshold for additional rate reductions, highlighting his careful stance on the issue.
Trump, who has been a continual advocating for low interest rates to drive economic growth, refers to the expectations that the European Central Bank (ECB) is preparing to cut interest rates again.
In his message, Trump scathed Powell, saying, “The ECB is expected to cut interest rates for the seventh time, but “too late” Fed Jerome Powell issued a report yesterday and yesterday, a typical and total “disruption.” ”
The president has added further criticism of Powell’s timing and decision, focusing on economic indicators he believes will justify immediate interest rate cuts.
Despite Trump’s public frustration, the Fed is trying to maintain independence from political influence, Powell stressed in his speech Wednesday, calling independence a “question of law.”
Still, the actions of the Trump administration have sparked fear among policymakers and financial observers that the president may attempt to more aggressively undermine this autonomy.
One particular concern is Trump’s potential efforts to eliminate Powell before the Fed chair closes in May 2026.
Previously, the administration issued executive orders aimed at expanding the president’s influence on central bank responsibility, particularly in its regulatory role.
Trump has also shown an willingness to disrupt the independence of other agencies that fire staff from agencies such as the Federal Trade Commission and the National Labor Relations Commission.
Chief Justice John Roberts granted temporary administrative stays earlier this month, allowing the Trump administration to eliminate leaders from two independent bodies that have pending full Supreme Court considerations.
Powell dealt with these developments carefully, adding that while he doesn’t believe the ruling applies directly to the Fed, he is “heedly monitoring” the implications.
Tensions between him and Powell have been frequent throughout Trump’s first term, with Trump labeling the Fed’s chairs as “enemies” and viewing central bankers as “bone-in.”
Trump initially appointed Powell, but their relationship quickly became sour when interest rates remained stable, contrary to Trump’s preference.
Following Trump’s reelection victory in November, Powell firmly stated his refusal to resign when asked by the president.
When asked about the president’s legal authority to eliminate him, Powell emphasized that “it is not permitted under the law.”
Meanwhile, ECB policymakers, facing economic uncertainty, partly caused by Trump’s trade strategy, are poised to announce seven consecutive tax cuts amid growing concerns about the broader impact of tariffs.
