President Donald Trump reiterated his call for the Federal Reserve to lower interest rates, suggesting the possibility of replacing Chair Jerome Powell on Thursday.
In a recent post on Truth Social, Trump shared his views:
“The ECB is expected to cut interest rates for the 7th time, and yet, ‘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!’ 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. Powell’s termination cannot come fast enough!”
The European Central Bank (ECB) is actively lowering rates to stimulate growth within the Eurozone and is anticipated to announce another cut later today.
This commentary followed Powell’s speech at the Economic Club of Chicago, where he discussed the challenges posed by the administration’s tariffs on the central bank’s efforts to balance inflation control with growth stimulation. He stated, “If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close,” remarks that led to a significant stock market decline on Wednesday.
This criticism is not a new development, as Trump has previously questioned Powell’s monetary policies. Following the administration’s tariff announcement on April 4, Trump remarked on social media that it would be “a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” suggesting that Powell, often perceived as reactive, could improve his reputation.
This is, however, the first instance in which Trump has directly called for Powell’s dismissal. Powell has previously clarified that the president does not hold the authority to terminate him, citing legal protections for the position.
Powell’s tenure as Federal Reserve Chair is set to conclude in May 2026.
