Trump Calls for Fed Chair Powell’s Removal, Slams Interest Rate Stance Amid Economic Uncertainty

Former U.S. President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell, saying Powell’s termination “cannot come fast enough” while pushing for immediate interest rate cuts. The statement came via Trump’s post on Truth Social, as the Fed maintains its current policy stance amid inflation and recession concerns.

Trump criticized Powell for not slashing rates like the European Central Bank (ECB), which recently reduced its key rate due to weakening growth linked to global trade tensions—many triggered by Trump’s own tariff measures.

Powell, however, emphasized the Fed’s independence and cautioned against hasty moves, saying the central bank needs more clarity on the evolving economic landscape. He noted the risks of Trump’s tariffs increasing inflation and unsettling job markets.

Despite Trump’s pressure, Fed officials like New York Fed President John Williams expressed no immediate need to change the 4.25%-4.50% benchmark rate, citing persistent inflation and slower growth.

The political tension is amplified by a pending Supreme Court case that could redefine the limits of presidential power to dismiss leaders of independent bodies like the Fed. While Powell’s term ends in May 2026, it’s unclear whether Trump aims to wait or hopes for legal grounds to expedite his removal.

IMF chief Kristalina Georgieva and market analysts warn that interfering with Fed independence could destabilize financial markets and intensify economic risks, particularly around inflation and employment.