Former U.S. President Donald Trump reignited his feud with Federal Reserve Chair Jerome Powell on Thursday, stating that Powell’s removal “cannot come fast enough.” The criticism comes amid Trump’s push for interest rate cuts—something Powell has recently signaled the Fed is hesitant to do.
Posting on Truth Social, Trump slammed Powell for not acting sooner to cut rates, saying he should have followed the European Central Bank’s (ECB) lead. The ECB lowered its benchmark rate by 0.25% due to declining growth, partly driven by Trump’s own tariff policies, which have rattled global trade and weakened economic forecasts.
In contrast, Powell and other Fed officials have signaled caution. New York Fed President John Williams said there’s no rush to change rates, emphasizing the need to monitor inflation and economic uncertainty throughout the year.
Trump’s tariff initiatives have led to a complex economic scenario: lower growth projections paired with persistent inflation risks. Reuters reports that 45% of economists now foresee a U.S. recession.
Despite Powell’s assurance on Fed independence—echoed in a speech to the Economic Club of Chicago—Trump continues to criticize him as “too late and wrong.” He also derided Powell’s recent address as “another complete mess.”
Behind the scenes, Treasury Secretary Scott Bessent is reportedly warning against any move to fire Powell, saying such action could destabilize financial markets. The legal battle over presidential authority to remove heads of independent bodies is now in the hands of the U.S. Supreme Court.
With Powell’s term set to expire in May 2026, it’s unclear whether Trump will wait it out or hope for a legal route to force an earlier exit.