Trump publicly criticized Powell and the Federal Reserve, calling for interest rate cuts. He believes that current rates are too high and negatively impact the economy.

* Powell's response: Powell defended the Federal Reserve's policies, emphasizing the importance of maintaining price stability and combating inflation. He also warned that Trump's tariffs could lead to stagflation.

* Market impact: This conflict has caused some volatility in financial markets, as investors try to anticipate the outcome and its potential effects on the economy.

* Constitutional debate: Trump's calls for Powell's dismissal have sparked a debate about presidential power and the independence of the Federal Reserve.