“Can’t come fast enough”: Trump seeks “termination” of Fed Reserve Chair Powell

Federal Reserve Board Chairman Jerome Powell held a press conference at the Federal Reserve in Washington, DC, following a meeting of the Federal Open Market Committee on December 18, 2024.

President Donald Trump has once again targeted Federal Reserve Chair Jerome Powell. In a post on Truth Social on Thursday, Trump called for Powell’s removal to lower interest rates and ease the economic impact of his tariff plan. Trump criticized Powell’s recent report, describing it as a “complete mess” and insisting that interest rates should be lowered immediately. Trump further stated that Powell’s termination should happen quickly, emphasizing his authority to remove him.

Trump’s comments came after Powell warned about the potential negative consequences of the administration’s tariffs on the economy during a speech at the Economic Club of Chicago. Powell highlighted the significant impact of the announced tariff increases on inflation and growth, suggesting that the effects could be more enduring than anticipated.

Trump has consistently clashed with Powell over interest rate policies and has attempted to exert more influence in that area. However, Powell cannot be removed from his position until his term concludes in May 2026. The possibility of Trump attempting to dismiss Powell remains uncertain, with some politicians cautioning that such a move could create instability in the financial markets. Senator Elizabeth Warren voiced concerns that if the President has the power to fire the Federal Reserve Chair, it could lead to an economic downturn.