U.S. President Donald Trump, left, with U.S. Federal Reserve Chair Jerome Powell.
Win McNamee | Kevin Lamarque | Reuters
On Thursday, President Donald Trump reiterated his call for the Federal Reserve to reduce interest rates, suggesting even the possibility of terminating Chair Jerome Powell.
In a post on Truth Social, Trump remarked:
“The ECB is set to cut interest rates for the seventh time, yet ‘Too Late’ Jerome Powell of the Fed, who is consistently TOO LATE AND WRONG, issued yet another report yesterday that was characteristically a complete ‘mess!’ Oil prices are down, grocery costs (even eggs!) are declining, and the USA is profiting from tariffs. Powell should have lowered interest rates like the ECB long ago; however, he certainly needs to act now. Powell’s dismissal cannot come soon enough!”
Indeed, the European Central Bank has been lowering rates in an attempt to stimulate growth in the region, with another reduction anticipated later on Thursday.
This statement followed Powell’s speech at the Economic Club of Chicago, where he acknowledged that the administration’s tariffs complicate the Fed’s decisions on whether to control inflation or support growth.
“If that were to happen, we would assess how far the economy is from each objective, as well as the differing timeframes over which those gaps may be expected to close,” Powell mentioned. His comments led to a sharp market decline on Wednesday.
This marks not the first time Trump has criticized Powell’s handling of U.S. monetary policy. On April 4, shortly after the administration’s “Liberation Day” tariff announcement, Trump noted it would be “an EXCELLENT time for Fed Chairman Jerome Powell to reduce interest rates. He is usually ‘late,’ but he could change that perception quickly.”
However, this is the first occasion where Trump has specifically called for Powell’s removal. Powell has asserted that the president cannot terminate him, citing legal restrictions.
Powell’s tenure as Fed chair is set to conclude in May 2026.
