Trump Suggests Removing Federal Reserve Chairman Jerome Powell

On Thursday, President Donald Trump criticised Jerome Powell, Chair of the Federal Reserve, for refusing to cut interest rates. He also threatened to fire him, raising concerns that the current Trump administration will breach the rule of no political interference with the Fed.

Trump expressed his dissatisfaction with Federal Reserve Chair Jerome Powell in a social media post, declaring, “Powell’s termination cannot come fast enough!” He cited Powell’s refusal to cut interest rates as the primary reason for a potential future dismissal. Trump reiterated these threats during a meeting in the Oval Office with the Italian Prime Minister, where he boasted about his ability to remove Powell quickly if he chose to. He also emphasized that he was not pleased with Powell’s performance.

In response, Jerome Powell dismissed Trump’s threats as empty and emphasized that the independence of the Federal Reserve is safeguarded by U.S. law. He reaffirmed the central bank’s commitment to making decisions based on economic data rather than political pressure. Powell also highlighted that the tariffs imposed by Trump’s administration are likely to contribute to rising inflation and a slowdown in economic growth, which, in turn, would make it increasingly difficult for the Federal Reserve to cut interest rates anytime soon.