President Donald Trump intensified his longstanding criticism of Federal Reserve Chair Jerome Powell on Thursday, calling for Powell’s “termination” as head of the central bank. Trump’s remarks come in response to Powell’s criticism of his economic policies during a speech on Wednesday, with the Fed Chairman predicting that the president’s tariffs will increase inflation and delay any decision on interest rate cuts.
Trump insists that the Fed should cut interest rates to match the European Central Bank, which announced rate cuts on Thursday.
“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’” Trump wrote on Truth Social. “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
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Trump has long accused Powell and the other leaders of the Fed of “playing politics” with inflation rates. This latest escalation comes after Powell warned that Trump’s proposed tariffs could increase inflation and harm economic growth, a position Trump has dismissed.
On Wednesday, while speaking at the Economic Club of Chicago, Powell said that the chaos caused by Trump’s recent slate of tariffs on foreign goods will likely drive up inflation, requiring the Fed to delay rate cuts while the situation evolves.
“Tariffs are highly likely to generate at least a temporary rise in inflation,” Powell said. “The inflationary effects could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored.”
Powell added that he was waiting “for greater clarity before considering any adjustments to our policy stance.”
“We’re always going to be aiming for maximum employment and price stability,” he said. “I do think we’ll be moving away from those goals for the balance of this year, or at least not making any progress, and then we’ll resume that progress as we can.”
Powell has on multiple occasions reaffirmed that the president cannot unilaterally fire him without cause, though Trump could nominate a replacement when Powell is eligible for reelection in May 2026.
Connor Walcott is the lead writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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