President Donald Trump on Thursday criticized the Chairman of Federal Reserve Jerome Powell, urged the central bank to reduce interest rates and say “Powell’s termination cannot come soon.”
It is unclear whether Trump’s comment shows the desire to remove Powell from his position or the desire to complete the term of office of Powell as Chair of Fed in 2026. The Fed is an independent government agent founded by the congress.
The statement came a day after Powell voiced concerns about Trump’s tariff policy, saying that it would likely climb inflation and slow down economic growth. Powell shows that the Fed can approach interest rates with restraints as policy makers observing the economic effects of Trump tariffs.
“Jerome Powell from The Fed, who is always late and wrong, yesterday issued a report which was” chaos! “Trump said Thursday morning in a post about social truth.
Powell must be “of course lower” interest rates, Trump added.
Since Trump served, he has criticized Powell on several occasions, although there is a norm of political independence that has long been in the central bank. Sentiment echoed criticism of Powell who was voiced by Trump during his first term of office in the office.
On Wednesday, Powell increased the possibility of what economists called “stagflation,” which is when inflation rises and the economy is slowing down.
If Fed raises interest rates as a means to protect against inflation that is induced by tariffs under such scenarios, he is at risk of holding loans and slowing down the economy further, experts previously told ABC News.
On the other hand, experts say, if Fed decreases the level to stimulate the economy in dealing with potential slowdines, it threatens to increase expenditure and worsen inflation.
Last month, Trump urged the central bank to reduce interest rates, a few hours after choosing to leave the loan rate that has not changed. In January, Trump also advised interest rates to respond to what he described as a prospect of lower oil prices.
Chairman of Federal Reserve Jerome Powell spoke at the Economic Club of Chicago, April 16, 2025, in Chicago.
ABC News
In November, a few days after the victory of Trump’s election, Powell happened to a challenging tone when asked if he would resign from his position if Trump asked him.
“No,” Powell said, paused to let the answer one word register with reporters gathered at a press conference at Fed headquarters, blocks far from the White House.
When asked whether Trump could fire or reduce it, Powell replied: “Not permitted based on law.”
Powell has repeatedly emphasized the Fed’s political independence. During the press conference at the Fed headquarters last month, Powell was asked again about the threat of the political independence of the agency.
“I did answer that question in this room some time ago, and I did not have the desire to change the answer and there was nothing new for you today,” Powell said.
Federal Reserve Act, which founded the central bank in 1913, gave the central bank of the size of independence from the White House.
The federal law allows the president to remove the Federal Reserve Governor, including the chairman of the FED, “For the Purpose.”
Experts who previously spoke to ABC News acknowledged that some legal ambiguity surrounded what types of behavior guaranteed sufficient causes for transfer, but they said policy disputes could not meet such standards.