#TrumpVsPowell Today, April 20, 2025, the relationship between Federal Reserve Chairman Jerome Powell and President Donald Trump continues to be tense, revolving around interest rate policies and the possibility of Powell being fired. Below are the latest developments based on available information:
- **Trump continues to criticize Powell**: Trump has intensified his attacks on Powell, accusing him of "playing politics" by not lowering interest rates to stimulate the economy. In a recent post on Truth Social, Trump called Powell "always slow and wrong" and stated that firing Powell "couldn't come fast enough." Trump also told reporters that if he wanted, Powell would "leave very quickly," suggesting he believes he has the authority to fire Powell, although this could lead to serious legal controversies [Web ID: 0] [Web ID: 13] [Post ID: 7].
- **Pressure from Trump's tariff policy**: Powell has warned that Trump's tariff policies, including a 10% tax applied to all imports starting April 9 and higher-than-expected tariffs, could push inflation up and slow economic growth. In a speech on April 16 at the Economic Club of Chicago, Powell emphasized that the Fed could find itself in a difficult situation, having to choose between controlling inflation and supporting economic growth, a "stagflation" scenario (high inflation, low growth) the Fed hasn't faced in decades [Web ID: 2] [Web ID: 15].
- **Powell and Fed's response**: Powell asserts that he has no intention of resigning before his term ends in May 2026, despite pressure from Trump. He emphasizes the Fed's independence, arguing that decisions are based on economic analysis, not influenced by political pressure. However, Trump seems dissatisfied with this stance and continues to pressure the Fed to lower interest rates, especially as the European Central Bank (ECB) has cut rates for the seventh time this year [Web ID: 1] [Web ID: 5].
- **Warning from stakeholders**: Many are concerned that if Trump actually fires Powell, it could cause significant volatility in the financial markets. Treasury Secretary Scott Bessent advised the White House against firing Powell, as it could destabilize the market. Senator Elizabeth Warren also warned that if Trump had the power to fire Powell, the U.S. market could "collapse" [Web ID: 0] [Web ID: 20].
- **Current situation**: As of this time (7:45 AM, April 20, 2025), there is no information indicating that Trump has formally acted to fire Powell. However, posts on X reflect Trump's growing dissatisfaction, with some of his supporters claiming Powell is making it difficult for the American middle class [Post ID: 4]. Meanwhile, others argue that Powell is quietly maintaining economic stability, even "saving Trump from himself" by not hastily lowering interest rates amid potential inflation [Post ID: 1].
### Conclusion
The relationship between Jerome Powell and Donald Trump remains very tense today, with Trump continually criticizing and threatening to fire Powell, while Powell is steadfast in defending the Fed's independence. This situation could escalate, especially as Trump's tariff policies start to have a noticeable impact on the U.S. and global economies.
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