President Donald Trump has once again publicly pressured Federal Reserve Chairman Jerome Powell, demanding lower interest rates and even calling for Powell’s dismissal. This latest attack, delivered via a Truth Social post on Thursday, April 17th, 2025, follows a recent speech by Powell where he acknowledged the complexities of the current economic situation, particularly the impact of the administration’s tariffs.
Trump’s post highlighted the European Central Bank’s (ECB) recent rate cuts, contrasting them with what he views as Powell’s inaction. He argued that the Fed should follow suit, citing falling oil and grocery prices as evidence of a need for economic stimulus. The statement concluded with a particularly pointed remark: “Powell’s termination cannot come fast enough!”
This isn’t the first time Trump has criticized Powell’s monetary policy. In early April, just days after a major tariff announcement, Trump urged Powell to cut rates. However, this marks the first time he’s explicitly called for Powell’s removal. It’s important to note that Powell has previously stated the President lacks the legal authority to fire him, a point reiterated by many legal experts. Powell’s current term as Fed Chair is set to expire in May 2026.
The timing of Trump’s comments is significant. Powell’s recent speech at the Economic Club of Chicago touched upon the challenges presented by the administration’s tariffs. He explained that these tariffs create a difficult balancing act for the Fed, forcing them to weigh inflation concerns against the need to support economic growth. These comments contributed to a market sell-off on Wednesday. Trump’s renewed attack only further fuels market uncertainty and adds to the ongoing political tension surrounding the Fed’s independence and its role in navigating the current economic landscape.
The ongoing feud between Trump and Powell underscores the delicate relationship between the executive branch and the central bank. It remains to be seen what impact, if any, Trump’s latest pronouncements will have on the Fed’s policy decisions. However, it’s clear that the political pressure on the Fed is unlikely to abate anytime soon, given the ongoing economic challenges and the intensely partisan political climate.
