In a fresh attack on Federal Reserve Chair Jerome Powell, U.S. President Donald Trump lashed out on Truth Social, demanding immediate interest rate cuts and stating that “Powell’s termination cannot come fast enough.” The comment has reignited debate over whether a sitting president can actually remove the head of the independent central bank.
While Trump has criticized Powell repeatedly over the years, this is the first time he has explicitly called for his firing. Trump’s post came shortly after Powell warned that trade tariffs — a key plank of Trump’s economic agenda — could fuel inflation and complicate the Fed’s price stability goals. Powell added that inflationary pressures “could be more persistent” than expected, but reaffirmed that the Fed is “well positioned to wait for greater clarity” before making changes to rates, which remain at 4.25% to 4.50%.
In his post, Trump praised the European Central Bank for its expected 7th rate cut and accused Powell of acting “too late and wrong.” He insisted the Fed should have already cut rates and claimed the U.S. is “getting rich on tariffs.”
Can Trump fire Powell?
Despite Trump’s sharp rhetoric, the U.S. President does not have the authority to fire the Fed Chair. Powell has previously clarified that “it’s not permitted under the law” for presidents to remove members of the central bank’s Board of Governors without cause.
Powell’s current term as Chair of the Federal Reserve runs through May 2026. While Trump had previously stated he would allow Powell to complete his term if he was “doing the right thing,” several of his advisers have publicly suggested that Powell should resign.
As the election season heats up, Trump’s renewed attacks on the Fed may add more political pressure to an already delicate economic balancing act.