Trump threatens Fed Chair Powell’s removal

President Donald Trump sharply criticized Federal Reserve Chair Jerome Powell on Thursday, calling for his “termination” for not cutting interest rates fast enough.

The remarks came after Powell warned that the president’s tariffs could harm the US economy and increase inflation. The president argued that the Fed’s reluctance to lower rates benefits Europe and hurts American consumers and businesses.

Meanwhile, the European Central Bank announced its seventh interest rate cut within a year, intensifying pressure on the Fed.

Despite the pressure, the Fed remains committed to its independence and says it will base decisions on economic data, not politics. Powell’s term runs until May 2026, and he intends to serve it out. 

Analysts caution that undermining the Fed’s autonomy could destabilize financial markets. At the same time, fears of recession continue as tariffs raise inflation risks and slow economic growth.

Powell emphasized the Fed’s dual goal: fighting inflation while supporting employment.