Trump calls for Fed Chair Jerome Powell’s ‘termination’ in blistering attack

President Trump renewed his attack on Federal Reserve chairman Jerome Powell Thursday for not cutting interest rates, even as Trump’s own trade war makes rate cuts more difficult.

In a social media post, Trump complained that Powell is “always TOO LATE AND WRONG,” and he insisted the Fed chairman’s “termination cannot come fast enough!”

The president was evidently frustrated that the European Central Bank was preparing to lower interest rates for the seventh time, while the Federal Reserve is in a holding pattern. Of course, European leaders have not imposed triple-digit tariffs which threaten to rekindle inflation.

Trump’s post came a day after Powell warned that the tariffs from the Trump administration are likely to cause both higher prices and slower economic growth.

“Tariffs are highly likely to generate at least a temporary rise in inflation,” Powell told the Economic Club of Chicago, noting that Trump’s import taxes were higher than most forecasters had expected. “The inflationary effects could also be more persistent.”

As a result, Powell said, the central bank is “well positioned to wait for greater clarity” before considering any reduction in interest rates.

Powell intends to serve out his term

In his social media post, Trump called Powell’s report a “complete mess,” arguing “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS.”

While oil prices have fallen in response to fears of a global economic slowdown, grocery prices actually rose last month, according to the latest inflation report from the Labor Department. Egg prices jumped nearly 6% between February and March, thanks to the lingering effects of bird flu.

Trump shakes hands with his then nominee for Fed Chair Jerome Powell at a press event in the Rose Garden at the White House on Nov. 2, 2017 in Washington, D.C. Despite appointing Powell in his first term, the two men have had a contentious relationship.
Trump shakes hands with his then nominee for Fed Chair Jerome Powell at a press event in the Rose Garden at the White House on Nov. 2, 2017 in Washington, D.C. Despite appointing Powell in his first term, the two men have had a contentious relationship. (Drew Angerer | Getty Images North America)

The back and forth is part of a long-running dispute between the president and the Fed chair, whom Trump nominated for that post during his first term in the White House.

Trump has frequently criticized the central bank for not keeping interest rates lower. The Fed is designed to operate independently of that kind of political pressure, so it can make the unpopular decisions necessary to fight inflation.

Powell has tried to avoid antagonizing the president, often ducking questions about Trump’s commentary. But he’s also been adamant that he intends to serve out the remainder of his term, which runs through May of next year.

Powell insists the president does not have the authority to fire him, except for “cause,” meaning some kind of bad behavior. Current Supreme Court precedent supports that view. But the White House has signaled a willingness to test that standard, firing board members of other independent agencies.

Powell said on Wednesday that lawmakers from both parties have generally defended the Fed’s ability to set interest rate policy without interference. But that doesn’t mean there isn’t grumbling.

“We are blessed with a large number of amply-compensated critics,” Powell said.

 

White House calls for a ‘comprehensive review’ of eight Smithsonian museums

The effort is focused on bringing the organization in line with President Trump's cultural directives ahead of the country's 250th anniversary celebrations.

Trump official tells census workers Congress has final say over the count, not Trump

Days after the president's call for a "new" census, the top official overseeing the Census Bureau told employees that Congress, not Trump, has final say over the tally, NPR has exclusively learned.

‘Alien: Earth’ is one of the best shows so far this year

The TV prequel to the Alien movies calls back to the best elements of those original films — including questions about corporate exploitation and technological advancements.

State Department slashes its annual reports on human rights

Required by Congress, the reports no longer single out things like rigged elections or sexual violence against children as human rights violations.

Tropical Storm Erin could become the first Atlantic hurricane of the 2025 season

The National Hurricane Center expects the storm to strengthen over the next several days and says it could become a hurricane by late Thursday.

D.C. has been under tighter federal control before. Here’s what it looked like

Trump's expansion of federal authority over Washington, D.C., is in many ways unprecedented, but calls to mind other times the city has been under tighter federal control.

More Economy Coverage