- Trump criticizes Jerome Powell as “too late,” threatens to fire, raising Fed independence fears.
- Powell insists he won’t quit, supported by laws safeguarding Fed independence.
- Dispute intensifies over tariffs and Powell’s conservative approach to cutting interest rates.
President Donald Trump has recently shown his displeasure with Jerome Powell, the Federal Reserve chairman, through a series of candid remarks.
Addressing reporters in the Oval Office, Trump indicated that he is not happy with Powell’s performance, describing him as “too late” and doing a bad job.
“He’ll be out of there real fast”: Trump says Fed chair Jerome Powell would step down “if I ask”
Source: Global News
Trump even went to the extent of stating that if he wanted Jerome Powell gone, he would disappear overnight. These comments have raised concerns about the Federal Reserve’s independence, which is supposed to work without political pressure.
Jerome Powell Stands Firm
Jerome Powell, who was initially appointed by Trump in 2017 to head the Federal Reserve and then reappointed by President Biden in 2022, has indicated he won’t resign simply because a president requests him to.
During a November news conference, when questioned as to whether he would step down if Trump demanded it, Powell merely said, “No.”
He added that the law shields Federal Reserve leaders from termination or demotion without cause and stressed that the central bank has an independent role separate from the White House.
The tension between Trump and Powell seems to have grown after Powell warned that Trump’s proposed tariffs could harm the U.S. economy. Trump has been pushing for the Federal Reserve to lower interest rates to strengthen economic growth, especially during uncertain times.
However, Jerome Powell and other Fed officials have been cautious, focusing on balancing inflation and economic growth instead of making quick changes.
Trump’s Public Criticism
Trump’s anger was also evident in a Truth Social post, where he attacked Jerome Powell for being “too late and wrong.” He likened the Federal Reserve to the European Central Bank, which has been reducing interest rates to stimulate its economy. Trump contended that lower rates are required because oil and grocery prices are lower, and tariffs are generating revenue. He even suggested he would like to see Jerome Powell’s “termination,” although a White House spokesperson subsequently clarified that this was no implied threat to dismiss him but a statement of Trump’s continued frustration.
Legal analysts say that dismissing Jerome Powell without cause would be unprecedented and probably illegal. Powell himself said that a president cannot fire him because the law shields his office. His current term as head of the Federal Reserve expires in May 2026, but Trump’s statement suggests a tough road ahead for Jerome Powell.
This is not the first time Trump has denounced Jerome Powell. Earlier this month in April, following the declaration of new tariffs, Trump declared that it would be a “perfect time” for Powell to lower interest rates and alter his “late” reputation.
However, this is the first time Trump has openly expressed that he would want Powell to be ousted, thus making the situation more critical.
The clash with Jerome Powell by Trump shows growing tension between the Federal Reserve and the White House. With repeated disputes over tariffs, inflation, and interest rates, Powell’s leadership will keep facing criticism in the months to come.
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