#TrumpVsPowell

The ongoing conflict between **President Donald Trump** and **Federal Reserve Chair Jerome Powell** has escalated significantly in recent days, with Trump publicly calling for Powell's removal and criticizing the Fed's interest rate policies. Here’s a detailed breakdown of the situation:

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### **1. Trump’s Criticism of Powell and Calls for Rate Cuts**

- Trump has repeatedly demanded that Powell lower interest rates, arguing that the Fed’s current stance is harming the economy. He claims that if the Fed had a more competent leader, rates would already be lower .

- In a social media post, Trump wrote: *"Powell’s termination cannot come fast enough!"* and mocked him with the nickname *"Too Late"* .

- Trump insists that inflation is under control (*"we have essentially no inflation"*) and that the Fed should follow the European Central Bank (ECB), which has cut rates multiple times .

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### **2. Powell’s Defense of Fed Independence**

- Powell has pushed back, stating that the Fed operates independently and that its decisions are based on economic data, not political pressure .

- He warned that Trump’s proposed tariffs could **increase inflation** and create economic uncertainty, making it harder for the Fed to balance its dual mandate of stable prices and maximum employment .

- Powell has also made clear that he **does not intend to resign**, citing legal protections that prevent his removal without cause .

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### **3. Can Trump Actually Fire Powell?**

- The **Federal Reserve Act** stipulates that Fed governors can only be removed *"for cause"* (e.g., misconduct), not over policy disagreements .

For deeper insights, you can explore the full articles [here (CNBC)](https://www.cnbc.com/2025/04/18/trump-renews-call-for-powell-to-lower-interest-rates-he-should-bring-them-down.html) and [here (AP News)](https://apnews.com/article/trump-powell-federal-reserve-fed-termination-b6148c8048dda538a6ca3b5a270fd09e).