- President Donald Trump said Federal Reserve Chair Jerome Powell’s “termination cannot come fast enough.”
- Trump called on the Fed to follow the European Central Bank and cut interest rates.
- Powell had said Wednesday that tariffs could usher in weaker economic growth and higher inflation.
President Donald Trump escalated his feud with Jerome Powell on Thursday, saying the Federal Reserve Chair’s “termination cannot come fast enough” in a Truth Social post.
Trump’s comments come a day after Powell said the president’s tariffs had been “significantly larger” than expected and could lead to weaker economic growth and higher inflation.
Trump wrote that the European Central Bank was expected to cut interest rates for the seventh time on Thursday, which it later did, and that the Fed should have done so “long ago” and “should certainly lower them now.”
The President described Powell as “TOO LATE AND WRONG,” adding: “Oil prices are down, groceries (even eggs!) are down.”
In his speech on Wednesday, Powell cautioned that renewed tariffs under the Trump administration could create a “challenging scenario” for the economy.
He warned that the Fed’s dual mandate — low unemployment and price stability— could be tested if tariffs drive up consumer prices while slowing growth. His words contributed to a deepening sell-off on the markets.
Trump’s post didn’t say whether he thought Powell should be dismissed immediately or at the end of his term in 2026.
Powell has previously said the president cannot fire him. Shortly after Trump’s election in November, Powell said he wouldn’t resign if asked and that firing him was “not permitted under law.”
The European Central Bank made another cut to interest rates on Thursday in response to Trump’s tariffs.
The 0.25 percentage point reduction to 2.25% is the seventh cut in eight meetings and brings the rate to its lowest level in more than two years.
