On Friday, President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell, reflecting the White House’s growing frustration with the Fed leader’s economic policies.
During a Q&A session with reporters, Trump highlighted instances of declining prices, stating, “If we had a Fed Chairman that understood what he was doing, interest rates would be coming down, too. He should bring them down.”
Trump’s calls for lower interest rates from the Fed have been a consistent theme throughout his presidency. His recent comments come amid increasing attacks on Powell, with the White House intensifying its rhetoric in recent days.
White House economic adviser Kevin Hassett revealed on Friday that the Trump administration is exploring the possibility of removing the Fed chair. Powell has previously asserted that he cannot be dismissed under current laws and intends to serve until the end of his term in May 2026.
“The president and his team will continue to study that matter,” Hassett stated following inquiries about the feasibility of terminating Powell, as reported by Reuters.
Trump expressed his desire for Powell’s ouster on social media platform Truth Social, remarking that “Powell’s termination cannot come fast enough” and referring to him as “Too Late”—a continuation of his practice of assigning nicknames to political figures.
This mention of “termination” sparked speculation regarding whether Trump was hinting at Powell’s potential premature removal from office. Hassett mentioned that the administration would seek to determine if there are “new legal analyses” that might permit such an action.
Powell’s recent comments regarding Trump’s contentious tariff policies appeared to irritate the president. The Fed chair warned on Wednesday that these tariffs could elevate inflation in the short term and complicate the central bank’s efforts to balance high employment with price stability. Powell remarked that the tariffs, many of which are currently suspended, “are likely to move us further away from our goals.”
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell articulated in prepared remarks delivered to the Economic Club of Chicago. He added that the Fed is “well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
The Federal Open Market Committee currently has its baseline borrowing rate set between 4.25% and 4.5%, a range that has remained unchanged since December. According to CME’s FedWatch tool, there is more than a 90% chance that the central bank will maintain its rates at its upcoming policy meeting.
As the Trump administration has ramped up its criticisms, some Democrats have rallied in defense of Powell. Senator Elizabeth Warren (D-Mass.) cautioned on Thursday that a presidential dismissal of the Fed chair would have severe repercussions for U.S. financial markets.
“Understand this: If Chairman Powell can be fired by the president of the United States, it will crash markets in the United States,” Warren warned while speaking to Finance Newso.
