“His Termination Cannot Come Fast Enough”: Trump Escalates Feud With Fed Chair Powell

President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, claiming he has the authority to remove Powell from his position and expressing clear dissatisfaction with the central bank’s approach to interest rates.

“If I want him out, he’ll be out of there real fast, believe me,” Trump said during an Oval Office meeting with Italian Prime Minister Giorgia Meloni on Thursday. “I’m not happy with him.”

JUST IN: 🇺🇸 President Trump said he’s “not happy” with Federal Reserve Chair Jerome Powell 👀

“If I want him out, he’ll be out of there real fast, believe me.” pic.twitter.com/LuUSMOz5Pb

— Bitcoin Magazine (@BitcoinMagazine) April 17, 2025

The president’s remarks came just one day after Powell delivered a speech in Chicago warning about the potential economic consequences of the Trump administration’s sweeping tariff policies. Earlier that same day, Trump had posted on his social media platform, Truth Social, that “Powell’s termination cannot come fast enough!”

Growing Tensions Over Monetary Policy

Trump’s frustration centers on what he perceives as Powell’s reluctance to lower interest rates despite what the president describes as “essentially no inflation.” The president pointed to the European Central Bank (ECB), which announced its seventh interest rate cut on Thursday, contrasting it with the Fed’s decision to hold rates steady.

“‘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!'” Trump wrote in his social media post. “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.”

The Federal Reserve has maintained its benchmark interest rate after implementing three cuts at the end of last year. Inflation has steadily declined from a peak of 9.1% in 2022 to 2.4% last month, approaching the Fed’s target of 2%.

However, Powell and most Fed policymakers have indicated they are keeping rates on hold due to uncertainty created by Trump’s sweeping tariffs, including a 10% tax on all imports and a 145% levy on imports from China.

Powell’s Warning About Tariffs

In his Chicago speech on Wednesday, Powell offered his starkest assessment yet of the potential impact of Trump’s trade policies, describing them as “very fundamental policy changes” that are “significantly larger than anticipated.” The Fed chair warned that the tariffs would likely push up inflation and slow economic growth, creating a challenging scenario for monetary policy.

“That’s the only thing he’s good for,” Trump said of Powell lowering interest rates. “I think at some point he will. He’s going to have a lot of political pressure, you know they are political also and I think there’s a lot of political pressure for him to lower interest rates.”

Wall Street banks like Goldman Sachs have already raised their odds of a recession starting, while consumers are increasingly pessimistic about their job prospects and worried that inflation will increase as the cost of import taxes gets passed along to them.

The Budget Lab at Yale University has estimated that the increased inflationary pressures from the tariffs would be equivalent to the loss of $4,900 for an average U.S. household.

Can Trump Actually Fire Powell?

The question of whether a president can remove a Federal Reserve chair before their term expires has become increasingly relevant. Powell, who was initially nominated by Trump in 2017 and reappointed by President Joe Biden in 2022, has a term that runs until May 2026.

Powell has repeatedly defended the Fed’s political independence, stating at a November news conference that he would not step down if Trump asked him to resign. In remarks Wednesday, he emphasized that “our independence is a matter of law” and added, “We’re not removable except for cause. We serve very long terms, seemingly endless terms.”

Legal experts point to a landmark 1935 Supreme Court ruling in Humphrey’s Executor v. United States, which affirmed Congress’ authority to create independent federal agencies whose board members could only be removed “for cause” before their terms expired.

However, the Trump administration has already challenged this precedent by firing two Democratic members of the Federal Trade Commission and two Democrats on the board of the National Credit Union Administration. The Supreme Court is expected to revisit the 1935 case, potentially reshaping the limits of presidential power over independent agencies.

“If a President can fire an NCUA Board member at any time, how will we maintain public trust in our nation’s financial services regulatory system?” wrote Todd Harper, one of the officials dismissed by Trump, in a LinkedIn post.

Also Read: Trump Says It’s the Perfect Time for Fed Chair Powell to Cut Interest Rates

Markets React to Political Pressure

Financial markets have shown volatility in response to the escalating tension between Trump and Powell. While stocks didn’t appear to react directly to Trump’s Thursday comments about removing Powell, they have been sensitive to the broader implications of political interference in monetary policy.

Nathan Sheets, global chief economist at Citigroup Inc., warned of the danger “if we now cross the Rubicon on central bank independence” on top of adopting steep tariffs and other policies previously considered unusual for the U.S.

“The market volatility that we’ve seen over the past month or so would merely be the first course to a much, much longer and more challenging kind of downturn,” Sheets said on Bloomberg Television. The risk is “we start seriously and permanently undermining confidence in the economy and the markets,” he added.

Divided Administration Views

Trump’s desire to fire Powell appears to conflict with statements from his own Treasury Secretary, Scott Bessent, who told Bloomberg earlier this week that “monetary policy is a jewel box that’s got to be preserved.”

During his confirmation hearing in January, Bessent told congressional lawmakers that the Fed should remain independent. Economists widely believe that independent central banks are more effective at controlling inflation because they can make unpopular decisions when necessary without political interference.

ECB President Christine Lagarde indirectly addressed the situation on Thursday, saying, “I have a lot of respect for my esteemed colleague and friend Jay Powell. We have a steady solid relationship amongst central bankers. I think that relationship is decisive in order to have a solid financial infrastructure on which to ensure there is financial stability.”

History of Criticism

This is not the first time Trump has targeted Powell. During his previous term, Trump frequently criticized the Fed chair for raising interest rates, at one point in 2019 even calling Powell “the enemy.” In March 2020, as markets plunged during the early days of the pandemic, Trump told reporters he had the “right to remove (Powell) as chairman.”

The current criticism comes as Trump appears to be seeking a scapegoat for potential economic turbulence resulting from his tariff policies. After announcing increased tariff hikes on April 2 based on U.S. trade deficits with other nations, Trump was forced to announce a 90-day pause following a financial market backlash.

For now, Powell maintains that the Fed will base its decisions solely on what’s best for all Americans, stating Wednesday that “we’re never going to be influenced by any political pressure.” However, as political and economic tensions continue to rise, the relationship between the White House and the Federal Reserve appears increasingly strained, with potentially significant implications for U.S. monetary policy and economic stability.

Want real-time updates on Bitcoin, Ethereum, and blockchain trends? Crypto News Today delivers breaking crypto news, expert insights, and price movements to keep you informed.