President Trump sharply criticized Federal Reserve Chair Jerome Powell, intensifying his longstanding feud with the central bank leader by posting a strongly worded statement on social media that read: “Powell’s termination cannot come fast enough!”
The President once again signaled his frustration with the Fed’s cautious approach to interest rate cuts.
Trump’s anger was sparked by remarks Powell made on Wednesday when the Fed chair highlighted concerns about the economic impact of the administration’s tariffs.
Powell warned that the tariffs were creating a “challenging scenario” for the Fed — potentially complicating the central bank’s dual mandate to maintain stable inflation and robust employment.
The President expanded his attack later in the day while hosting Italian PM Giorgia Meloni at the White House.
“The Fed really owes it to the American people to get interest rates down. That’s the only thing he’s good for,” Trump said. “I am not happy with him. If I want him out of there he’ll be out real fast believe me.”
The broadside comes as the Wall Street Journal reported that Trump has privately discussed firing Powell for months and talked about it with former Fed Governor Kevin Warsh, including the possibility of selecting Warsh as Powell’s replacement.
Warsh advised against trying to fire Powell, arguing that he should let the Fed chair complete his term without interference, the Journal reported, citing unnamed people familiar with the matter.
It is not clear if Trump has the power to remove Powell, who is presidentially appointed but Senate-confirmed.
An effort by the President to remove members of other independent agencies is currently before the Supreme Court, but Powell on Wednesday said he felt the case would not change the Fed’s longstanding independence in monetary policy, something that has broad bipartisan support.
Contrary to Trump’s assertion that Powell would leave if asked, Powell has said he had no plans to vacate the job before his term ends in May 2026.
But Trump’s blow-up at Powell was sensitive enough that Treasury Secretary Scott Bessent has been cautioning White House officials against attempting to fire Powell, saying it would risk destabilizing financial markets, according to Politico.
“A sudden crystallization of the threat to Fed independence would both intensify market stress and shift it in more of a stagflationary direction with a sharp increase in tail risk,” Evercore ISI Vice Chair Krishna Guha said in a note.
Powell at the Chicago conference had stressed the importance of patience as it relates to the central bank’s monetary policy, noting the Fed needed clearer signals regarding Trump’s trade strategy before deciding on future rate adjustments.
The Fed’s benchmark interest rate is currently 4.25%-4.50%, where it has been since December following several rate cuts late last year.
Throughout Trump’s first term, tensions between him and Powell were frequent, with Trump labeling the Fed chair an “enemy” and referring disparagingly to central bankers as “boneheads.”
Their relationship soured when the Fed held interest rates steady, contrary to Trump’s preferences.
Powell, a former private equity investor, was reappointed by President Joe Biden in 2022.
