Trump talks about possible firing Federal Reserve Chair Jerome Powell
Donald Trump, President of the US (photo: Getty Images)
A sharp standoff is ongoing between Donald Trump and the Federal Reserve over monetary policy, which could lead to major personnel changes, reports SNS News.
On Friday, June 20, President Trump hinted at the possible firing of Federal Reserve Chair Jerome Powell.
He called the central bank chief a complete idiot over the decision not to cut interest rates.
Powell has faced consistent criticism for not lowering interest rates quickly enough, though back in April, Trump assured he had no plans to fire him.
Reasons behind Trump’s criticism of Powell
The main trigger for Trump’s criticism is the Federal Reserve’s decision to keep interest rates steady after hikes in 2022–2023 aimed at curbing inflation.
Trump believes rates should be cut faster to boost the economy and make borrowing more affordable.
Meanwhile, the Fed fears that lowering rates too quickly could spark a new surge in inflation, which, although it has eased, still remains above the 2% target.
Trump’s sharp rhetoric and future outlook
On his Truth Social posts, Trump called Powell a dumb guy and a Trump hater, adding that he tried various strategies to influence him, but none worked.
The president urged members of the Federal Open Market Committee to rethink their policy and immediately cut interest rates, even if it risks further inflation growth.
These statements continue the tension between Trump and the Fed, ongoing since his first presidential term.
Legal complications around a possible Powell dismissal
Despite harsh criticism, firing Powell could face legal hurdles.
Under federal law and court precedents, the Chair and members of the Federal Reserve Board of Governors can only be removed for cause.
A recent Supreme Court ruling allows the president to dismiss members of other independent agencies, but specifically excludes the Fed due to its unique structure.
Powell has previously stated he would not resign if Trump asked him to step down.
Separately, the Trump administration has petitioned the Supreme Court to reject a request for expedited review of a case concerning earlier large-scale import tariffs.
Donald Trump called the judges’ decision to suspend those tariffs a betrayal.
The Trump administration emphasized that the ruling does not annul the new tariff rates.
