sooner than later
Trump Intensifies Pressure on Fed Chair Powell, Hints at Early Removal Over Interest Rate Policy
In a fiery escalation of his ongoing clash with the Federal Reserve, President Donald Trump on Thursday sharply criticized Fed Chair Jerome Powell, saying his removal from office “cannot come fast enough.” The remarks were made during an Oval Office press conference and echoed in a Truth Social post that further underscored the president’s frustration with Powell’s monetary policy approach.
Trump’s comments came just one day after Powell signaled caution regarding interest rate adjustments, citing concerns that Trump’s sweeping new tariffs could drive up inflation while slowing economic growth. Speaking at a Federal Reserve event, Powell said the central bank would “wait for greater clarity” before making any moves on rates—language that did little to soothe a president pushing for aggressive rate cuts.
Trump: “If I want him out, he’ll be out real fast”
“If I want him out, he’ll be out of there real fast, believe me,” Trump told reporters on Thursday. “I don’t think he’s doing the job. He’s too late—always too late.”
Trump also blasted Powell on social media for failing to act in line with the European Central Bank (ECB), which has already implemented monetary easing measures. “He should have lowered interest rates, like the ECB, long ago,” Trump wrote. “He should certainly lower them now.”
Rumors Swirl About Powell’s Future
According to a Wall Street Journal report, Trump has been privately discussing Powell’s removal for months, although no final decision has been made. Sources told the Journal that Trump spoke with former Fed governor Kevin Warsh about replacing Powell. Warsh reportedly advised Trump to wait until Powell’s term ends in May 2026. Treasury Secretary Scott Bessent has also counseled against a premature ouster, warning of potential economic and legal fallout.
Despite these internal warnings, Thursday’s public rebuke adds to speculation that Trump could attempt an unprecedented challenge to Federal Reserve independence by trying to remove the Fed Chair before the end of his term.
A Complicated Backdrop: Tariffs and Inflation
The Fed’s caution is largely driven by Trump’s own policies. Earlier this month, the president announced the steepest tariffs in over a century, targeting a wide range of Chinese goods, before temporarily pausing some for 90 days to allow trade talks to continue.
Powell has warned that such tariffs could stoke inflation and drag on economic growth, making the case for rate cuts more complex. The central bank’s dual mandate—maximum employment and stable prices—means Powell must carefully weigh the inflationary impact of Trump’s trade policies before cutting rates.
What’s Next?
Trump’s increasingly vocal demands are unlikely to speed up Powell’s decision-making. The Federal Reserve operates independently, and while the president appoints the Fed Chair, removal is not straightforward and would almost certainly trigger a legal and political battle.
Still, the pressure is mounting. With elections on the horizon and Trump eager to stimulate the economy, monetary policy is quickly becoming a central political battleground.
Whether Trump follows through on his veiled threats remains to be seen—but the war of words between the White House and the Federal Reserve is unlikely to cool anytime soon.