Topline
President Donald Trump attacked Federal Reserve Chair Jerome Powell Thursday morning, saying his removal “cannot come fast enough” after the central bank chief warned Trump’s tariffs are likely to worsen inflation.
FILE PHOTO: President Donald Trump criticized Federal Reserve Jerome Powell for the central bank's ... More
Key Facts
In his post, Trump mentioned the European Central Bank’s decision to slash interest rates by 25 basis points and lashed out at Powell for being “TOO LATE AND WRONG,” for refusing to do the same.
On Wednesday, Powell addressed the Economic Club of Chicago and said Trump’s tariffs are “highly likely to generate at least a temporary rise in inflation.”
Trump pushed back against Powell’s speech in his post, saying it was a “typical, complete ‘mess!’”
In an apparent pushback against the inflation comment, the president claimed that grocery and global oil prices were down and noted, without offering evidence, that the “USA is getting RICH ON TARIFFS.”
Trump again said Powell should have lowered borrowing rates “long ago” and should “certainly lower them now,” despite the Fed chair signalling otherwise.
The president ended his post saying, “Powell’s termination cannot come fast enough!”
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What Did Powell Say In His Speech On Wednesday?
After noting tariffs could cause high inflation, the Fed Chair told the Economic Club of Chicago that the central bank faced a “challenging scenario in which our dual-mandate goals are in tension.” The comment was about the Fed’s efforts to both keep inflation under control and maintain a strong job market, which would likely be jeopardized if the U.S. faces an economic slowdown as a result of the tariffs. Despite Trump’s repeated demands to cut rates, Powell signaled the Fed may take a wait-and-see approach: “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
When Does Powell’s Term End?
Powell’s chairmanship of the federal reserve runs until March 2026, while his term as a governor of the central bank will be completed in February 2028.
Can Trump Remove Powell Before His Term Ends?
Trump’s rhetoric towards Powell has raised concerns that the president may try to remove the Fed chair from his role before his term ends. The president has fired top officials from other federal agencies, decisions that have since faced legal challenges. Earlier this month, Chief Justice John Roberts halted a lower court that blocked Trump’s firing of a member of the National Labor Relations Board and a member of the Merit Systems Protection Board while their legal challenges against the removals go forward. It is unclear if Trump could use this ruling to fire Powell. The Fed Chair was asked about the ruling on Wednesday and said: “I don't think that that decision will apply to the Fed, but I don't know. It's a situation that we're monitoring carefully.”
Further Reading
Trump’s Tariffs ‘Highly Likely’ To Boost Inflation, Says Fed Chair Powell (Forbes)
Powell does not think Trump's labor board firings case will apply to Fed (Reuters)
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