#PowellVsTrump

The ongoing tension between President Donald Trump and Federal Reserve Chair Jerome Powell centers on interest rate policies. As of June 21, 2025, Trump has intensified his criticism, suggesting he may attempt to fire Powell, whom he appointed in his first term, for not lowering interest rates quickly enough. Trump labeled Powell a "Total and Complete Moron" and argued rates should be at least two percentage points lower than the current 4.25%-4.5% range, citing economic costs.

Powell, whose term ends in May 2026, has resisted pressure, emphasizing the Fed’s decisions are data-driven, not political. He noted uncertainties, including the impact of Trump’s proposed 10% tariffs, which could raise inflation and slow growth, justifying the Fed’s cautious stance. A recent Supreme Court ruling in May 2025 described the Fed as a "quasi-private entity," potentially limiting Trump’s ability to dismiss Powell without cause, though Trump has hinted at testing this legal boundary.

Trump has also floated naming a successor early, with contenders like Treasury Secretary Scott Bessent, Fed Governor Chris Waller, and former Fed Governor Kevin Warsh. Waller recently suggested rate cuts could be considered by July due to cooling inflation and a weakening labor market. Markets are wary of an early nomination, fearing it could undermine Fed independence.Posts on X reflect the heated sentiment, with some users amplifying Trump’s calls for rate cuts and others speculating on Powell’s response to political pressure. However, these posts lack conclusive evidence and highlight polarized views.

The Fed’s next moves hinge on economic data, particularly tariff effects, while Trump’s public attacks continue to challenge Powell’s position without clear legal or immediate policy impact.