Trump Demands Fed Chair Jerome Powell’s Removal in Latest Attack Over Interest Rates
Trump slams Fed Chair Powell over rate policy, calls for his removal; Powell vows to serve full term, warns tariffs may fuel inflation.
Former President Donald Trump launched a scathing attack on Federal Reserve Chair Jerome Powell on Thursday, calling for his “termination” amid frustration over the central bank’s reluctance to cut interest rates.
In a strongly worded social media post, Trump claimed Powell is “always TOO LATE AND WRONG” and insisted his removal “cannot come fast enough.” The comments came just a day after Powell warned that the Trump administration’s steep tariffs could trigger higher inflation and slow economic growth.
Speaking at the Economic Club of Chicago on April 16, Powell said, “Tariffs are highly likely to generate at least a temporary rise in inflation,” noting that the latest import taxes were larger than expected and could have lingering effects on prices.
The Federal Reserve has opted to hold interest rates steady, even as the European Central Bank prepares for its seventh rate cut. Trump pointed to falling oil prices and what he claimed were declining grocery costs as reasons to slash rates. However, according to recent data from the Labor Department, grocery prices rose in March, with egg prices alone jumping nearly 6%, largely due to the impact of bird flu.
Despite the ongoing feud, Powell reaffirmed his intention to serve out the remainder of his term, which ends in May 2026. “We are blessed with a large number of amply-compensated critics,” Powell remarked, adding that both Republican and Democratic lawmakers have typically supported the Fed’s independence in setting monetary policy.
Trump, who appointed Powell during his first term, has frequently clashed with the Fed over its monetary decisions. The Federal Reserve operates independently to shield it from political influence, but recent White House actions suggest a growing willingness to challenge that independence. Legal precedent currently protects Powell from being removed without cause.
As economic tensions grow in the lead-up to the 2026 presidential race, the clash between Trump and Powell underscores the political stakes tied to monetary policy and inflation.
