Trump lashes out at Fed chair again: ‘Powell’s termination can’t come fast enough!’

U.S. President Donald Trump continues to deflect blame for the economic turmoil triggered by his erratic economic and trade policies. On Thursday, he took to his social media platform Truth Social to lash out once again at one of his favorite scapegoats: Federal Reserve Chairman Jerome Powell, even raising the specter of impeachment.

“Powell’s termination cannot come fast enough!” Trump posted. Legally, the president cannot fire the Fed chair before the end of his term, but in the authoritarian drift of Trump’s second presidency, the law is not always seen as a barrier.

“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!’ 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!” Trump wrote on Truth Social.

Powell, in fact, did not release any report on Wednesday. Instead, he delivered a speech and answered questions at the Economic Club of Chicago, where he made it clear that President Trump’s actions — particularly his aggressive tariff policies — are undermining the central bank’s ability to meet its dual mandate: full employment and price stability.

The U.S. economy had been growing at a steady pace and appeared on track for a successful soft landing — controlling inflation without triggering job losses or a recession — when Trump took office. Since then, his economic measures have stifled growth and inflation expectations have soared in light of Trump’s proposed tariffs. This is precisely what complicates the Federal Open Market Committee’s ability to continue cutting interest rates, as it did between September and December of last year.

The Fed has repeatedly warned of growing uncertainty. In his remarks Wednesday, Powell stressed that the central bank needs greater “clarity” on the impact of Trump’s policies before considering further rate cuts. This effectively rules out a rate cut at the upcoming May 6 meeting, and his warnings on inflation leave the prospect of a June cut hanging in the balance.

At the same time, Powell said he saw no need for intervention in response to recent market instability, asserting that markets are functioning properly despite the high volatility and distortions stemming from Trump’s actions. Investor distrust over the administration’s erratic policies has weakened the dollar and driven up Treasury bond yields, undermining their traditional role as a safe haven during stock market downturns. Overall, markets responded negatively to Powell’s remarks.

Powell’s term as Fed Chair runs until May 15, 2026, and as a member of the Board of Governors until January 31, 2028. Trump has previously said that he does not intend to remove Powell early. Treasury Secretary Scott Bessent has publicly affirmed the Fed’s independence in setting interest rates. Notably, Powell was appointed by Trump in 2018 and reappointed by Joe Biden in 2022.

Even during his first term, Trump made Powell a scapegoat, demanding rate cuts while waging his 2019 trade war. Powell, for his part, has made clear from the beginning that the president cannot legally fire him and that he will not step down before the end of his term. He has consistently defended the central bank’s independence and stressed that its decisions are not swayed by political pressures.

His latest reaffirmation came Wednesday in Chicago. “We’re never going to be influenced by any political pressure. People can say whatever they want. That’s fine, that’s not a problem. But we will do what we do strictly without consideration of political or any other extraneous factors,” he said during a Q&A session.

Trump’s criticism of Powell is contradictory. In October, he slammed Powell for cutting rates “too much” after a 0.5 percentage point reduction in September. Under Biden, he baselessly accused Powell of trying to help Democrats by lowering rates. Now back in the White House, Trump faults him for not cutting them fast enough.

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