Politics'Complete Mess': Donald Trump Explodes on Federal Reserve Chair Over Rising Interest Rates
Donald Trump attacked Jerome Powell on Truth Social.
Donald Trump blew up on social media after Federal Reserve Chair Jerome Powell warned about the impact of the president's tariff plan on rising interest rates.
The commander-in-chief threatened to fire Powell over his recent comments during an Economic Club event about how central banks and inflation work.
Donald Trump threatened to fire Federal Reserve Chair Jerome Powell.
During an event in Chicago on April 16, Powell said, "Unemployment is likely to go up as the economy slows, in all likelihood, and inflation is likely to go up as tariffs find their way and some part of those tariffs come to be paid by the public."
Powell suggested the Fed could face a "challenging scenario" between meeting its goals of low inflation and sustaining a sturdy economy and job market.
He suggested that the Fed’s priority should be stable prices, which could mean delaying interest rate cuts. He also claimed that the Fed would focus on whichever is the most prominent trouble spot, implying the Fed would cut rates if the economy were in or tipping into a recession.
Donald Trump issued his new tariff plan earlier this month.
Trump lashed out on April 17 in a Truth Social post, saying Powell "should have lowered Interest Rates... long ago, but he should certainly lower them now."
"The ECB is expected to cut interest rates for the 7th time, and yet, 'Too Late' Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete 'mess!' Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS," the president shared to his 9.6 million followers. "Powell’s termination cannot come fast enough!"
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Federal Reserve Chair Jerome Powell said the president can't fire him.
During Powell's speech at the Economic Club, he pointed out how the Fed's independence is "a matter of law" and that the central bank only makes decisions "based on our best thinking, based on our best analysis" and not by "political pressure."
"People can say whatever they want," the Federal Reserve chair added. "That's fine. That's not a problem. But we will do what we do strictly without consideration of political or any other extraneous factors."
The economy has been all over the place since Donald Trump announced his tariff plan.
In January, Trump claimed he knows interest rates better than the Fed.
The president's advisers were drafting a proposal to erode the Fed’s traditional independence by allowing him to be consulted on interest rate decisions.
He told reporters, "I think I know interest rates much better than they do. And I think I know it certainly much better than the one who's primarily in charge of making that decision. But no, I'm guided by them very much, but if I disagree, I will let it be known."
When asked if the Fed would listen to him about wanting to bring interest rates down, the GOP leader said, "Yeah."
During a Fed meeting on November 7, 2024, Powell was asked whether the president has the power to fire him.
He answered: "Not permitted under the law."
