Trump Calls for the Termination of Federal Reserve Chair Jerome Powell Over Interest Rate Policies

On April 17, President Donald Trump voiced his dissatisfaction with Jerome Powell, the independent head of the Federal Reserve, declaring that his "termination" is needed urgently. In a pointed message on his Truth Social platform, Trump reiterated a demand for Powell to reduce interest rates, contending that the Fed Chair's decisions have been consistently "TOO LATE AND WRONG." He specifically noted that Powell should have acted sooner, like the European Central Bank, which announced a reduction in its benchmark deposit rate.

Trump's comments came after Powell indicated that the broad tariffs imposed by the Trump administration could force the Fed to confront a challenging decision between managing inflation and maintaining employment rates. The unpredictability of Trump's tariff policies has raised concerns among investors and trading partners, leading to uncertainty about his long-term economic strategies and their implications for global trade.

Despite Trump's ongoing pressure for rate cuts, the Federal Reserve has maintained a stable interest rate between 4.25 percent and 4.5 percent since the beginning of the year, demonstrating a cautious approach. Trump has often criticized Powell, whom he appointed, suggesting that the Fed chairman's actions are influenced by political considerations. Additionally, during his campaign in August, Trump questioned the independence of the Fed, proposing that the White House should have a role in determining monetary policy. While the president cannot directly remove Federal Reserve governors, he could initiate a lengthy process to try and unseat Powell if he presents sufficient justification.