In a fiery broadside thatâs turning heads, former President Donald Trump has once again taken aim at Federal Reserve Chair Jerome Powellâthis time with sharper words and louder demands. Nicknaming him âToo Late Jerome,â Trump didnât hold back, saying Powellâs removal âcanât come fast enough.â
So, whatâs behind this latest outburst? Letâs break it down.
Trumpâs Frustration: The Fed Is Falling Behind
At the heart of Trumpâs complaint is a growing gap between the U.S. Federal Reserve and its European counterparts. While the European Central Bank prepares for its seventh rate cut, the Fed has yet to make a move. Trump sees this hesitation as a major misstep.
According to him, the signs are clear:
Inflation is easing
Oil prices are dropping
Grocery costs are down
Tariffs are driving up U.S. economic strength
In Trumpâs view, Powell is always too slow to actâand itâs hurting the economy.
The Trump Prescription: Cut Rates and Replace Powell
Trump isnât just venting. Heâs calling for immediate action.
First, he wants interest rates slashedânow. Lower rates, in his opinion, would stimulate the economy and fuel growth.
Second, heâs pushing for Powellâs ouster, arguing that the Fed chair shouldâve been replaced a long time ago.
Can a President Fire the Fed Chair? Not Exactly.
Hereâs where things get tricky. While Trump is clearly unhappy with Powell, U.S. law doesnât allow a president to fire the Fed Chair simply over policy disagreements. Powellâs current term runs through May 2026, and heâs made it clear that heâs not stepping down under political pressure.
So for now, Powellâs job is safeâat least legally.
Why This Matters: The Bigger Picture
Trumpâs comments may be aimed at Powell, but they send ripples far beyond the Fedâs boardroom. Political interferenceâor even the perception of itâcan shake financial markets and raise concerns about the independence of central banking.
Thereâs also the tariff factor. Powell has warned that Trumpâs proposed tariffs could actually drive inflation up, not down. That would put the Fed in a tough spotâespecially if theyâre being pushed to cut rates at the same time.
Whatâs Next?
Trump were to win a second term, Jerome Powellâs role as Fed Chair could be on the chopping block. Trump has made it clear: a return to the White House would likely mean major changes at the Federal Reserveâboth in leadership and in policy direction.
One thingâs certain: this battle between Trump and Powell is far from over.
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