Trump Seeks Removal of Fed Chair Jerome Powell in Harsh Critique

Jerome Powell, the Federal Reserve Chairman, remains committed to finishing his term, which lasts until the spring of 2026. He appeared at an event hosted by the Economic Club of Chicago on April 16, 2025.

President Donald Trump has escalated his criticism of Jerome Powell for not lowering interest rates, despite the complexities introduced by Trump's own trade policies.

In his public comments, Trump lambasted Powell as being consistently tardy and erroneous in his actions, expressing an urgency for Powell's swift removal.

The president was visibly annoyed by the contrast between the European Central Bank's aggressive rate cuts and the Federal Reserve's reluctance, a situation compounded by the potential inflationary impact of hefty tariffs imposed by European authorities.

This outcry followed a caution from Powell that the Trump administration's tariffs might lead to price hikes and decelerated economic growth.

Powell Stands by His Tenure

Trump lashed out at Powell's economic forecasts, dismissing them as disorderly. He touted the benefits the nation was reaping from tariffs while overlooking rising grocery prices reported by the Labor Department, including a notable increase in egg prices.

The discord harks back to a rocky relationship between Trump and Powell, despite Trump's initial nomination of Powell. The president has persistently pushed the Fed to maintain low interest rates, contradicting its intention to function independently of political influence.

Powell has mostly avoided responding directly to Trump's critiques but reaffirms his goal to complete his appointed term. He asserts that the president lacks the authority to dismiss him without justified cause.

Although some partisan support backs the Fed's independent rate-setting authority, dissatisfaction does exist, as Powell noted, pointing to a multitude of well-compensated detractors.