Trump Calls for Action Against Federal Reserve Chair Powell
Former President Donald Trump has expressed strong discontent with Federal Reserve Chair Jerome Powell, suggesting that it’s time for him to be removed from his position. Trump took to his Truth Social platform to criticize Powell, whom he had nominated during his first term, giving him the nickname “Too Late.” In his recent post, he declared, “Powell’s termination cannot come fast enough!”
It’s unclear whether Trump was hinting at Powell’s scheduled end of term in May 2026 or if he was calling for an immediate removal. The White House and a Federal Reserve spokesperson did not respond to requests for clarification.
Powell’s current term lasts until May 2026, while he will continue as a governor until February 2028. His comments came shortly after he reiterated in Chicago that the Federal Reserve isn’t in a rush to lower interest rates, as they are still analyzing the economic situation.
Senate Minority Leader Chuck Schumer criticized Trump’s remarks, saying on social media that an independent Federal Reserve is crucial for a healthy economy, which Trump seems to overlook.
Recently, the topic of the President’s control over independent agencies has gained attention, especially after the administration dismissed officials from several regulatory bodies. This has raised questions about the independence established by a 1935 Supreme Court decision. In an event on Wednesday, Powell mentioned a current Supreme Court case regarding the removal of officials from the National Labor Relations Board and the Merit Systems Protection Board, adding that he doesn’t think it will affect the Federal Reserve, though it’s a situation to watch closely.
Moreover, Powell highlighted that the Federal Reserve operates under laws that protect its independence, stating that officials can only be removed for specific reasons.
Treasury Secretary Scott Bessent recently indicated that discussions about Powell’s successor could begin in about six months, with interviews expected to take place in the fall. Bessent emphasized the importance of the Federal Reserve’s independence in managing monetary policy.
Trump’s comments about Powell recall his previous critiques during his presidency when he often voiced frustration over the Fed not acting quickly enough on interest rates. The former president’s recent increase in tariffs has raised concerns about U.S. economic growth, making the Fed’s policies more challenging. Powell stressed the importance of ensuring that these tariffs do not lead to ongoing inflation issues.
While Trump advocates for lower borrowing costs to support businesses, most economists oppose this idea, citing persistent inflation. He also compared Powell to the European Central Bank, which recently lowered its interest rates, stating that “Too Late” Powell should have followed suit much earlier and should act now.
In his post, Trump noted that, despite the drop in oil prices, grocery prices continue to increase. According to recent data, food prices have risen by 2.4% over the past year.
During her press conference on Thursday, European Central Bank President Christine Lagarde expressed admiration for Powell, emphasizing the collaborative relationship between the Federal Reserve and the European Central Bank, which she confirmed would continue.
