Trump Urges Swift Dismissal of Federal Reserve Chair Powell

Former President Donald Trump has publicly expressed his disdain for Federal Reserve Chair Jerome Powell, suggesting that Powell’s removal is long overdue. Trump’s comments, made Thursday, reflect ongoing tension regarding the Fed’s interest rate policies. He criticized Powell for not taking more aggressive action to lower rates, despite an array of economic indicators that, in Trump’s view, justify such moves.

On the heels of a speech from Powell emphasizing the need for clearer data before making decisions on interest rates, Trump took to social media to voice his grievances. “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” he remarked, urging Powell to follow the lead of the European Central Bank, which recently cut its key interest rate from 2.5% to 2.25%.

While Powell was nominated by Trump in 2017 and reappointed by President Biden in 2022, the former president suggested he might seek Powell’s ouster before his term expires next year. However, legal frameworks protect the Fed chair from arbitrary dismissal, complicating Trump’s possible course of action. Powell has already indicated he would not resign if asked by Trump.

Trump’s tariffs have contributed to economic strains, leading to inflation pressures and uncertainties surrounding growth. Powell’s responsibilities include stabilizing prices and maximizing employment, objectives made increasingly challenging by Trump’s policies. As the economic landscape shifts, the former president seems eager to shift blame onto Powell, positioning him as a scapegoat for any downturn.

Addressing the Economic Club of Chicago recently, Powell reaffirmed the Fed’s commitment to making decisions based solely on the interests of all Americans rather than catering to political pressures. “Our independence is a matter of law,” he asserted, emphasizing that Fed officials are shielded from removal except for specific causes. He predicts little risk to this independence, noting bipartisan support for the Fed’s autonomy.

As tensions mount, the question remains: can Trump successfully remove Powell from his post? With economic challenges ahead, the dynamics between the former president and the Fed chair will be closely watched.

Reporting by AP journalist Sagar Meghani contributed to this article.