#TrumpVsPowell President Trump's call for Jerome Powell's "termination" as Fed Chair stems from disagreements over interest rate policies. Trump believes the Fed should cut interest rates more aggressively to stimulate economic growth, while Powell has taken a more cautious approach, citing concerns about inflation and global market volatility .

*Key Points of Contention:*

- *Interest Rate Policy*: Trump wants deeper rate cuts to boost economic growth, while Powell prioritizes fighting inflation and maintaining economic stability.

- *Trade War Impact*: Trump's trade policies, including tariffs, have contributed to inflationary pressures, making the Fed's decision-making process more complex.

- *Fed Independence*: The Fed is designed to operate independently, and Powell insists that the president doesn't have the authority to fire him except for "cause," meaning bad behavior .

*Potential Consequences:*

- *Market Volatility*: Trump's threats to remove Powell could lead to increased market uncertainty and volatility.

- *Constitutional Showdown*: If Trump proceeds with firing Powell, it could trigger a constitutional debate about the limits of executive power over the Federal Reserve .

Powell has expressed his intention to serve out the remainder of his term, which runs through spring 2026. The situation remains tense, with the White House signaling a willingness to test the boundaries of its power over the Fed.