Trump Says Fed Chair Powell Should Be Fired, Demands Immediate Rate Cuts

President Donald Trump has reignited his feud with Federal Reserve Chair Jerome Powell, demanding swift action to lower interest rates and even suggesting that Powell should be removed from his position.

In a sharply worded post on his social media platform Truth Social on Thursday, Trump criticized the central bank’s handling of interest rates and said Powell “should have lowered interest rates, like the European Central Bank, long ago — but he should certainly lower them now.” He ended the post by saying Powell’s removal “cannot come fast enough.”

This isn’t the first time Trump has publicly gone after Powell. Tensions between the two have flared since Powell was appointed by Trump himself in 2018. As inflation and borrowing costs remain high, Trump has made it clear he believes the Fed’s decisions are hurting the economy.

Why Trump Wants Rates Lowered

Trump has consistently pushed for lower interest rates as a way to stimulate economic growth. Lower rates mean cheaper loans for consumers and businesses — a move that can boost investment, housing, and spending.

In contrast, the Federal Reserve has raised interest rates over the last two years to combat inflation, which reached a 40-year high in 2022. While inflation has cooled somewhat in recent months, the Fed remains cautious about cutting rates too early, fearing it could trigger another surge in prices.

By pushing for immediate rate cuts, Trump is signaling that he believes the risk of slower economic growth or a potential recession outweighs the risk of lingering inflation.

Powell Stands by Fed Independence

Just a day before Trump’s latest comments, Powell addressed the Economic Club of Chicago and emphasized the importance of the Fed’s independence from political pressure. “That independence is very widely understood and supported in Washington and in Congress where it really matters,” he said.

Powell’s message was clear: the Fed will make its decisions based on economic data, not political influence.

Can a President Fire the Fed Chair?

Although Trump has expressed interest in removing Powell in the past, it’s not a simple process. The Federal Reserve Chair serves a four-year term and cannot be fired just for policy disagreements. Legal experts say a sitting president would need substantial cause — like misconduct — to try to remove a Fed chair.

Powell’s current term as Chair runs through early 2026, and no formal steps have been taken to replace him.

Political Pressure Builds as Rate Debate Grows

Trump’s renewed attacks on Powell aren’t just about policy—they could shape how the public views the Fed’s role heading into a crucial election year. By demanding immediate rate cuts and criticizing Powell’s leadership, Trump is setting a clear contrast between his economic approach and the Fed’s more cautious strategy.

If rates remain high and economic growth slows, expect Trump to keep spotlighting the Fed as a roadblock to recovery. That kind of pressure could put Powell in a challenging position—trying to stick to long-term goals like controlling inflation while facing increasingly politicized criticism from the White House.

While the Fed isn’t expected to shift its stance based on Trump’s comments, the messaging could still influence markets, investor confidence, and even public sentiment about the central bank’s independence.

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