Trump Blasts Fed Chair Powell, Saying His ‘Termination Cannot Come Fast Enough’

Once more, former President Donald Trump has criticized Federal Reserve Chair Jerome Powell's handling of U.S. monetary policy and called for his immediate resignation. Trump’s Fiery Criticism

Former President Donald Trump slammed Federal Reserve Chair Jerome Powell in a recent statement, stating that his "termination cannot come fast enough." Trump, who appointed Powell to the position in 2018, has expressed regret over the decision on numerous occasions, accusing the Fed chief of mismanaging interest rates and harming the economy. Trump stated, "Jerome Powell is a weak leader who has repeatedly made the wrong calls on inflation and interest rates." “He was too slow to raise rates when inflation was soaring, and now he’s keeping them too high, crushing businesses and workers.”

Background: A Strained Relationship

Trump’s relationship with Powell has been contentious for years. Powell was publicly criticized by Trump during his presidency for not cutting interest rates sufficiently aggressively, despite his initial appointment. The feud continued after Trump left office, with the former president blaming Powell for contributing to economic instability.

Recently, Trump has suggested that, if re-elected, he may replace Powell before his term ends in 2026. A Fed chair can only be fired "for cause" under current law, making it difficult to fire them outright. However, Trump has previously hinted at challenging such norms.

Economic and Political Implications

Trump’s latest remarks come amid ongoing debates over the Fed’s policies. High interest rates continue to be a source of discomfort for consumers and businesses, despite the fact that inflation has decreased since its peak in 2022. Some economists argue that Powell’s cautious approach prevented a deeper crisis, while critics claim the Fed acted too late to curb inflation.

Despite political pressure, Powell has emphasized that the Fed's decisions are based on data and are not influenced by politics. However, Trump’s comments raise concerns about the potential politicization of the Federal Reserve in a second Trump term.

Expert Opinions and Reactions from the Market Financial analysts warn that Trump’s attacks on Powell could create uncertainty in markets. Historically, the Fed’s independence has been seen as crucial for economic stability, and any perceived interference could spook investors.

“The Fed’s credibility relies on its ability to operate free from political pressure,” said Mark Zandi, chief economist at Moody’s Analytics. “Public attacks from a presidential candidate undermine that credibility.”

Meanwhile, Trump’s allies argue that the Fed needs a more aggressive leader aligned with pro-growth policies. There are rumors that Trump might appoint a chair who is more dovish and willing to cut interest rates to boost the economy in place of Powell. What’s Next?

Trump's stance on the Fed could become a major campaign issue in the upcoming 2024 election. If he wins, a showdown over Powell’s future seems inevitable. Powell's current focus is still on directing monetary policy, but the political ire is unlikely to subside. As Trump intensifies his criticism, the debate over the Fed’s role—and its leadership—will only grow louder.

Trump’s Scathing Rebuke: “Powell’s Termination Cannot Come Fast Enough”

In a blistering statement, former President Donald Trump tore into Federal Reserve Chair Jerome Powell, declaring:

“Jerome Powell is a weak, indecisive leader who has done a terrible job. He was too slow to raise rates when inflation was out of control, and now he’s keeping them too high, killing businesses and jobs. His termination cannot come fast enough.”

Trump’s remarks, made during an interview with a conservative news outlet, mark one of his most aggressive attacks yet on the Fed chief—a surprising escalation given that Trump himself appointed Powell in 2018.

Why Is Trump So Angry at Powell?

Trump’s fury stems from his belief that Powell’s policies have damaged the U.S. economy. Key grievances include:

• Delayed Response to Inflation

Trump argues Powell waited too long to hike interest rates in 2021-2022, allowing inflation to surge to 40-year highs.

“He should have acted sooner. Now we’re paying the price,” Trump said.

• Keeping Rates Too High for Too Long

Despite inflation cooling, the Fed has held rates at 5.25%-5.50%, the highest in over two decades.

Trump claims this is crushing small businesses, homebuyers, and the stock market.

• Political Bias Allegations

Trump has long accused Powell of favoring Democrats, suggesting he kept rates low to help Biden in 2020 and is now refusing to cut them to hurt Trump’s 2024 chances.

“He’s playing politics with our economy,” Trump alleged.

A Broken Relationship: From Appointee to Nemesis

2018: Trump Appoints Powell, Expecting a “Low-Rate Guy”

• Trump selected Powell in 2017, believing he would keep interest rates low to fuel economic growth.
• Initially, Powell complied, cutting rates in 2019 after Trump’s pressure.

2019-2020: Public Feud Erupts

• When Powell hesitated to cut rates further, Trump openly attacked him, calling the Fed “boneheads” and even suggesting Powell was a “worse enemy than China.”
• The tension was so severe that Trump explored firing Powell, but legal advisers warned it would trigger a market panic.

2024: Renewed Hostilities

Now, with Trump leading polls and inflation still a key voter concern, he is reviving his attacks, possibly to position himself as the pro-growth alternative to Biden.

Can Trump Actually Fire Powell? Legal and Political Hurdles

While Trump has vowed to remove Powell quickly if re-elected, it’s not that simple:

1. Federal Reserve Independence

• By law, the Fed chair cannot be fired for policy disagreements.
• The president can only remove a Fed chair “for cause” (e.g., corruption or misconduct).

2. Trump’s Potential Workarounds

• Pressure Powell to Resign: Trump could publicly shame Powell into stepping down.
• Replace Him in 2026: Powell’s term ends in May 2026, allowing Trump to appoint a more compliant chair.
• Challenge the Law: Some Trump allies argue the “for cause” rule could be tested in court.

3. Market Risks

• Any attempt to oust Powell could trigger financial instability, as investors value Fed independence.
• Analysts warn that politicizing the Fed could lead to higher borrowing costs and market volatility.

How Powell and the Fed Are Responding

Powell has avoided engaging directly with Trump’s attacks, sticking to his stance that the Fed’s decisions are “data-dependent, not political.”

However, behind the scenes, Fed officials are reportedly concerned about Trump’s threats, fearing a second term could undermine decades of central bank independence.

Broader Implications: A Preview of Trump’s Economic Agenda?

Trump’s latest outburst signals that, if re-elected, he may:

✔ Push for rapid rate cuts, even if inflation risks linger.

✔ Install a more dovish Fed chair aligned with his growth-first policies.

✔ Challenge the Fed’s traditional independence, bringing monetary policy under tighter White House influence.

Wall Street’s Take: Nervous but Not Panicking (Yet)

1. Investors are watching closely, but most believe Powell will stay until at least 2026.
2. If Trump wins, expect a major battle over the Fed’s future.

Conclusion: A High-Stakes Clash Over America’s Economic Future

Trump’s escalating attacks on Powell are more than just political rhetoric—they foreshadow a potential shakeup of the Federal Reserve’s role in a second Trump administration. With the economy already a top election issue, the feud could become a central battle in the 2024 campaign.

Will Trump succeed in removing Powell? Could the Fed lose its independence? And what would that mean for inflation, jobs, and markets?

One thing is clear: The fight between Trump and Powell is far from over.