On Monday, local time in the U.S., President Trump intensified pressure on Federal Reserve Chairman Powell, calling him a 'big loser' and warning that if interest rates are not lowered immediately, the U.S. economy may slow down.

Trump wrote on Truth Social that there is almost no inflation due to the decline in energy and food prices. In mentioning Powell, he stated: 'But the economy may slow down unless the big loser, 'Mr. Too Late,' lowers interest rates now.'

Recently, Trump has repeatedly criticized Powell and hinted that he has the ability to replace the Federal Reserve Chairman before the end of the term, which has unsettled Wall Street. On Monday, U.S. stock markets fell sharply as traders weighed the possibility of Powell's dismissal, with the S&P 500 down 2.3% and the Nasdaq down 2.6%.

At the time Trump made the above remarks, central bank governors and economic policymakers from around the world were scheduled to attend the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington this week.

Additionally, Trump criticized last Thursday, stating that Powell's term should end 'as soon as possible.' Trump then told reporters: 'If I want him gone, he will be gone very soon, believe me.'

The Trump administration's decision to impose sweeping tariffs on foreign imports has raised concerns that inflation may worsen as consumers and businesses begin to feel the impact of the additional tariffs. The uncertainty created by Trump has thrown global markets into turmoil and darkened the outlook for the world's largest economy, as investors withdraw funds from U.S. assets, causing the dollar to continue to weaken.

Powell stated last week during a speech at the Chicago Economic Club that the Federal Reserve must ensure that tariffs do not lead to a more sustained rise in inflation and indicated that the Fed will 'wait for clearer circumstances before considering adjustments to our policy stance.'

Although Trump appointed Powell as Federal Reserve Chairman during his first term, his team is now exploring whether it is legally possible to dismiss the central bank leader before his term ends in May 2026. In response, Powell has clearly stated that, under the law, the president cannot remove him.

White House National Economic Council Director Kevin Hassett stated last week that Trump and his team are exploring whether they can dismiss Powell. This has heightened concerns about the independence of the Federal Reserve and left investors increasingly uneasy amid an escalating trade war.

Krishna Guha, Vice President of Evercore ISI, stated that any attempt by Trump to dismiss Powell could trigger a significant sell-off in U.S. stocks. 'If you start questioning the independence of the Federal Reserve, you are raising the threshold for the Fed to cut rates. If you really try to remove the Fed Chairman, I think you will see a severe market reaction, with yields rising, the dollar falling, and a stock market sell-off.'

Karl Schamotta, Chief Market Strategist at Corpay, commented: 'If the Fed's dual mandate—maintaining price stability and promoting maximum employment—is diluted by a series of new goals set by the White House, policymakers may find themselves unable to significantly tighten policy in the face of a sudden price surge.'