#TrumpVsPowell As of April 2025, tensions have escalated between former President Donald Trump and Federal Reserve Chair Jerome Powell. Trump has publicly criticized Powell for not lowering interest rates and hinted at removing him before his term ends in May 2026. Trump recently stated that Powell’s “termination cannot come fast enough” and is reportedly exploring legal avenues to oust him.

Powell, however, has defended the Fed’s independence, emphasizing that monetary policy decisions should remain free from political pressure. He insists that the Federal Reserve’s autonomy is crucial to maintaining economic stability.

In the midst of this standoff, Trump is considering Kevin Warsh, a former Federal Reserve governor and economic advisor, as a potential replacement. Warsh shares Trump's concerns about inflation and fiscal responsibility, which could influence future Fed policy if he were appointed.

The situation is further complicated by a pending Supreme Court case that could redefine the president's authority over independent agencies like the Federal Reserve. Legal experts believe the case could set a historic precedent.

These developments are causing concern among economists and investors, who fear that political interference could undermine market confidence and the credibility of the Federal Reserve. The outcome could reshape the future of U.S. economic governance.