Trump vs. Powell: A Clash Over Economic Policy
In April 2025, the public dispute between President Donald Trump and Federal Reserve Chairman Jerome Powell reached a boiling point, spotlighting a critical tension in U.S. economic policy. Trump has intensified his criticism, calling for Powell's termination and labeling him "always TOO LATE AND WRONG" on interest rate decisions (CNN).
Trump argues that swift rate cuts would stimulate the economy, particularly as his administration pushes aggressive tariff policies to bolster domestic markets.
Conversely, Powell has warned that these tariffs, described as "significantly larger than anticipated" on April 16, 2025, could drive inflation higher and slow economic growth, placing the Fed in "uncharted waters" (NPR).
Powell emphasizes the Federal Reserve's independence, crucial for fulfilling its dual mandate of stable prices and maximum employment. He has vowed to serve out his term until May 2026, despite Trump's threats
