#TrumpVsPowell The feud between Donald Trump and Federal Reserve Chair Jerome Powell is heating up. Trump has been vocal about his dissatisfaction with Powell, calling for his "termination" due to disagreements over interest rates and tariffs. Here's what's behind the tension ¹ ²:

- *Tariffs and Inflation*: Powell warned that Trump's proposed tariffs could fuel inflation and slow economic growth, prompting Trump to lash out on social media.

- *Interest Rates*: Trump believes the Fed is keeping rates too high, harming growth and job creation. Powell, however, is cautious about cutting rates due to inflation concerns.

- *Fed Independence*: The Federal Reserve Act protects the central bank's independence, limiting presidential authority to remove a Fed chair only "for cause," such as legal or ethical misconduct.

*Key Exchanges:*

- Trump claims he can remove Powell and says he's "not happy" with him over interest rates.

- Powell stated that the Fed's independence is a matter of law and refused to step down even if Trump asked.

*Potential Impact:*

- The clash exposes growing friction between Trump's economic strategy and the Fed's independent authority over monetary policy.

- A pending Supreme Court case could clarify presidential power over independent agencies, but its impact on the Fed's unique legal status remains uncertain.

Powell's term expires in 2026, which could give Trump a chance to appoint a new Fed chief if he's reelected ¹.