In his latest broadside against U.S. monetary policy leadership, President Donald Trump on Thursday publicly called for the expedited departure of Federal Reserve Chair Jerome Powell, criticizing the central bank’s pace on interest rate adjustments and labeling Powell as chronically late in addressing economic needs.
“Powell’s termination cannot come fast enough!” Trump wrote in a post on his Truth Social platform, reviving his combative stance against the man he nominated during his first presidential term.
"Too Late": Trump Unleashes New Nickname
In characteristically sharp rhetoric, Trump derisively referred to Powell as “Too Late,” a clear jab at what he sees as the Federal Reserve’s delayed response to economic challenges. Trump argued that the Fed “should have lowered rates already” and insisted it must act immediately to cut borrowing costs to support growth.
His comments come amid mounting economic pressures and market volatility, with investors increasingly scrutinizing the Fed’s next steps in the wake of Trump’s aggressive tariff policies and continued trade tensions with China and Europe.
Unclear Intentions Spark Speculation
While Trump’s statement left ambiguity about whether he intends to seek Powell’s removal before the end of his term, or simply welcomes its natural conclusion, it has stirred speculation in political and financial circles.
The White House did not immediately respond to requests for clarification, and no formal announcement or executive action has followed the post so far.
The Federal Reserve Act grants the U.S. President the power to appoint the Fed chair, but only the Federal Reserve Board of Governors can remove a sitting chair for cause — a rare and politically fraught process. Powell’s current term as Fed Chair is set to end in May 2026, though he remains a board member through 2028 unless otherwise removed.
A Familiar Flashpoint
This is not the first time Trump has publicly lashed out at Powell. During his first term, Trump repeatedly criticized Powell and the Fed for raising interest rates during the economic expansion, arguing that such moves were undermining his administration’s growth agenda.
While Powell has largely avoided engaging in political disputes, his recent cautionary comments about Trump’s tariff policies potentially slowing growth and raising inflation appear to have reignited tensions.
At a speech earlier this week, Powell warned that recent tariff escalations could weigh on consumer spending and investment, contributing to economic headwinds. The remarks reportedly frustrated administration officials and prompted Trump’s Thursday response.
Market Reactions: Jittery but Measured
Financial markets registered mild unease following the president’s comments. The U.S. dollar dipped slightly in early trading, while stocks pulled back modestly, reflecting renewed uncertainty over Fed independence and potential policy disruptions.
“Comments like this from the President create a perception risk for central bank credibility,” said Lena Thompson, chief market strategist at CrossPoint Capital. “Markets are trying to parse whether this is bluster or a prelude to something more disruptive.”
Fed Independence Under the Microscope
The episode once again places the spotlight on the importance of central bank independence, a core principle of modern monetary policy. Economists and former Fed officials have long warned that political pressure on the Fed risks undermining market confidence and complicating economic management.
“Attacks on the Fed — especially personal ones — threaten to politicize monetary policy,” said former Fed Governor Daniel Tarullo. “That’s a dangerous path, particularly in turbulent economic times.”
Conclusion: A Brewing Battle Over Policy Control
Trump’s comments underscore a growing divide between the White House and the central bank, with monetary policy now becoming a key battleground in the broader debate over how best to manage the U.S. economy amid inflationary pressures, geopolitical uncertainty, and election-year politics.
Whether the statement was a rhetorical outburst or a signal of pending action remains unclear. But one thing is certain: tensions between the Oval Office and the Fed are heating up once again, with global markets watching closely.
