President Donald Trump abruptly criticized the president of the Federal Reserve, Jerome Powell, urged the Central Bank to reduce interest rates and saying that Powell’s termination cannot arrive soon. “
It was not clear if Trump’s comments indicated the desire to eliminate Powell from his position or an eagerness for the end of Powell’s mandate as president of the Fed in 2026. Fed is an independent government agency established by Congress.
The comments occurred one day after Powell expressed an alarm on Trump’s tariff policy, saying that inflation and slowing economic growth would probably increase. Powell indicated that the Fed can address interest rates with restriction as policy formulators observe the economic effects of Trump tariffs.
“Jerome Powell, of the Fed, which is always too late and incorrect, yesterday issued a report that was another and typical, complete” disorder! Trump said Thursday morning in a publication about Truth Social.
Powell should “certainly reduce” interest rates, Trump added.
Since Trump assumed the position, he criticized Powell on multiple occasions, despite a long -standing political independence norm in the Central Bank. The feeling resonates Powell’s repeated criticism that Trump expressed during his first term in office.
On Wednesday, Powell raised the possibility of what economists call “stagflation”, which is when inflation increases and the economy slows down.
If the Fed increases interest rates as a means to protect against inflation induced by the rate in that scenario, run the risk of querying loans and decelerating the economy, experts previously said to ABC News.
On the other hand, experts said, if the Fed reduces rates to stimulate the economy in the face of a potential deceleration, threatens to increase spending and worsen inflation.
Last month, Trump urged the Central Bank to reduce interest rates, hours after he chose to leave the indebtedness rates without changes. In January, Trump also advocated interest rate cuts in response to what he described as the lowest oil prices.
The president of the Federal Reserve, Jerome Powell, speaks at the Economic Club of Chicago, on April 16, 2025, in Chicago.
ABC News
In November, days after Trump’s electoral victory, Powell gave a challenging tone when asked if he would resign his position if Trump asked him.
“No,” said Powell, pauses to let the response of a word register with journalists gathered at a press conference at the Fed headquarters, moves away from the White House.
When asked if Trump could shoot or degrade it, Powell replied: “The law is not allowed.”
Powell has repeatedly affirmed the political independence of the Fed. During a press conference at the Fed headquarters last month, Powell was asked again about threats to the agency’s political independence.
“I answered that question in this room some time ago, and I don’t feel like changing that answer and I have nothing new for you today,” Powell said.
The Federal Reserve Law, which founded the Central Bank in 1913, granted the Central Bank a measure of independence from the White House.
The Federal Law allows the President to eliminate a governor of the Federal Reserve, including the president of the Fed, “for cause.”
The experts who previously spoke with ABC News recognized that some legal ambiguity surrounds what type of behavior guarantees sufficient cause for elimination, but said it is unlikely that a political dispute complies with such a standard.
