The Federal Reserve Chief Jerome Powell is under close scrutiny of the Trump administration. The US President affirmed, that if he is asked to leave “he’ll be out of there real fast”. However, Powell himself said he would not leave if such an instruction is given. Trump said in a press conference that he “was not happy with Powell” and that he had been “too late” to take actions.
This comes after Trump urged Powell to lower interest rates but the Central Bank chief delayed the demand by asking for enough economic data to support the rate cut. It is speculated that this “call for termination” is an aftermath of Powell’s chilling warning about the President’s tariff meltdown effects.
As the global economy is still gauging the effects of the Trump 90-day tariff pause, the ECB announced that the rates have been cut the seventh time since the past year.
Powell, earlier this week commented that at an event in Chicago that the Trump administration has brought “very fundamental policy changes” including the sweeping tariffs that are “significantly larger than anticipated”. These changes were unlike anything seen in modern history as per Powell but has put him in uncharted waters and unique challenge for the decades.
Matching Powell’s statements, the Feds have predicted rising inflation and unemployment as an effect of Trump’s rising tariffs. Relying on the economic data, Powell’s monetary decisions strive for maximum employment and stable prices.
After being questioned in the press conference, President Trump whether he would be removing him, he blatantly diverted it by responding, “Yeah. Next question?”
REPORTER: Powell says he won’t leave even if you ask him to
TRUMP: Oh, he’ll leave. If I ask him to he’ll be out of there … I’m not happy with him. If I want him out, he’ll be out of there real fast. Believe me.
REPORTER: Are you trying to remove him?
TRUMP: Yeah, next… pic.twitter.com/4cT0EZ4wfP
— unusual_whales (@unusual_whales) April 19, 2025
The tension between the Trump administration and Federal Reserve Chair Jerome Powell underscores a growing clash between political expectations and institutional independence. As Powell remains committed to data-driven monetary policy amidst economic volatility and tariff pressures, his stance has put him at odds with the President’s aggressive economic agenda.