U.S. President Donald Trump has intensified his public attacks on Federal Reserve Chair Jerome Powell, saying he would not hesitate to remove him if needed. Speaking during a press interaction, Trump asserted, “If I want him out, he will be out of there real fast. Believe me.” The statement came in response to Powell’s reported comment that he wouldn’t leave the position even if asked.
Trump’s remarks add to a growing rift with the central bank over its monetary policy. The president has been vocal about his dissatisfaction with the Fed’s reluctance to cut interest rates despite rising inflation and stagnant growth. Hours earlier, Trump took to Truth Social to slam Powell as “too late and wrong,” pointing to the European Central Bank’s multiple rate cuts as a model the U.S. should follow.
The exchange comes amid heightened market volatility and growing investor unease. Powell, whose term runs until May 2026, has previously maintained that a U.S. president cannot legally remove a Federal Reserve Board member without cause—a claim now under fresh scrutiny.
Economic concerns are further compounded by Powell’s latest remarks on the impact of Trump’s tariffs. Speaking at a recent event, the Fed Chair warned that “the level of tariff increases announced so far is significantly larger than anticipated,” adding that they are “highly likely to generate at least a temporary rise in inflation,” and could have more lasting effects. He noted that the Fed’s obligation remains to “keep longer-term inflation expectations well anchored.”
Powell also acknowledged ongoing market distress, saying, “Markets are struggling with a lot of uncertainty.” Economists echo those concerns, pointing to a dangerous mix of flat growth, high inflation, and elevated fiscal deficits. Some analysts even noted that Powell’s language now closely resembles the rhetoric he used during the Fed’s previous rate-hike cycle.
With Trump pushing for an aggressive monetary easing strategy ahead of the elections, and Powell standing firm on caution, the standoff between the White House and the Fed may only deepen.
