President Trump sharply criticized Federal Reserve Chair Jerome Powell on Thursday, 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.
Powell 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.
His comments indicated a relatively high threshold for additional rate reductions, underscoring his cautious stance on the matter.
Trump, who has continuously advocated for lower interest rates to spur economic growth, referenced expectations that the European Central Bank (ECB) was preparing to lower rates yet again.
In his message, Trump sharply rebuked Powell, stating, “The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’”
The president added further criticism of Powell’s timing and decisions, noting economic indicators that he believes justify immediate rate cuts: “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.”
Despite Trump’s public frustration, the Fed seeks to maintain independence from political influence, a stance Powell emphasized in his Wednesday speech, calling independence a “matter of the law.”
Still, the Trump administration’s actions have sparked fears among policymakers and financial observers that the president might attempt to undermine this autonomy more aggressively.
One particular concern is Trump’s potential effort to remove Powell before his term as Fed Chair concludes in May 2026.
Previously, the administration issued executive orders aiming to expand presidential influence over central bank responsibilities, particularly in regulatory roles.
Trump has also demonstrated a willingness to disrupt the independence of other agencies, firing officials at bodies such as the Federal Trade Commission and the National Labor Relations Board.
Supreme Court Chief Justice John Roberts granted a temporary administrative stay earlier this month allowing the Trump administration to remove leaders of two independent agencies pending full Supreme Court consideration.
Powell addressed these developments cautiously, saying he didn’t believe this ruling would apply directly to the Fed but added they were “monitoring carefully” for any implications.
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.”
Although Trump initially appointed Powell, their relationship quickly soured when the Fed held interest rates steady, contrary to Trump’s preferences.
Following Trump’s re-election victory in November, Powell firmly indicated his refusal to resign if asked by the president.
When questioned about the president’s legal authority to remove him, Powell emphatically responded, “Not permitted under the law.”
Meanwhile, ECB policymakers, facing economic uncertainties partly caused by Trump’s trade strategies, are poised to announce their seventh consecutive rate cut amid rising concerns about the broader impact of tariffs.
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