Trump Doubles Down on Threat to Fire Fed Chair Jerome Powell – Here’s Why
Trump has really cranked up the heat on Jerome Powell, the chair of the Federal Reserve, suggesting that he might fire him over the Fed’s refusal to cut interest rates. Trump’s frustration has been building, and on Thursday, he called Powell “too late and wrong” when it comes to making rate cuts, and even went so far as to say, “Powell’s termination cannot come fast enough.”
So, what’s making Trump so angry? It all goes back to a recent speech Powell gave at the Economic Club of Chicago. In his talk, Powell acknowledged that Trump’s tariff policies are complicating the Fed’s job of controlling inflation and managing employment. Powell’s comments hinted that there was no rush for a rate cut, which set Trump off. Trump’s been pushing hard for rate cuts, especially since tariffs on Chinese goods have shot up to 145%, and he thinks cutting rates is crucial for keeping the economy growing.
Trump didn’t hold back on his frustration, even comparing Powell’s slow approach to that of the European Central Bank, which recently lowered rates. Trump wrote on social media, “Oil prices are down, groceries are down, and the USA is getting rich on tariffs. Too late should have lowered interest rates long ago, but he should certainly lower them now.”
Trump’s been vocal about wanting Powell to act faster, and in a previous post, he even said it was a perfect time for Powell to change his image by cutting rates. Trump has also reportedly asked his advisers if he has the legal power to remove Powell, and discussions inside the White House have touched on the possibility of firing him.
But can Trump actually fire Powell? Not really. Powell’s term as Fed Chair runs until May 2026, and legal experts have made it clear that Trump can’t remove him just because they disagree on policy. To do so, there would need to be legal cause and possibly approval from the Senate, which makes it a tricky and controversial move.
The tension is high because the Federal Reserve is meant to be independent from the president, and messing with that independence could shake up market confidence and even destabilize the global economy. Powell’s approach has been pretty steady and data-driven, resisting political pressure like the kind Trump is putting on him right now.
So, while Trump’s threats may be loud, firing Powell isn’t as easy as he thinks.
Why Trump’s Firing Threat Against Fed Chair Powell is Gaining Momentum
