President Donald Trump on Thursday intensified his criticism of Federal Reserve Chair Jerome Powell, once again calling for lower interest rates and suggesting, for the first time, the possibility of terminating Powell from his position.
In a social media post, Trump argued that the Federal Reserve was lagging behind its global counterparts, pointing to the European Central Bank’s ongoing rate cuts as it attempts to stimulate growth across the eurozone. The ECB is widely expected to cut rates again later Thursday.
“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. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!” Trump wrote on Truth Social.
Trump’s comments followed Powell’s address on Wednesday at the Economic Club of Chicago, where the Fed chief acknowledged that the administration’s tariff policies complicated the central bank’s dual mandate of managing inflation and supporting economic growth. “If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close,” Powell said.
Those remarks added to market jitters and contributed to a significant sell-off in U.S. equities later that day.
While Trump has repeatedly criticized Powell’s handling of monetary policy — often accusing him of acting too slowly — Thursday marked the first time the former president publicly floated the idea of removing the Fed chair. On April 4, just days after the administration’s announcement of new “Liberation Day” tariffs, Trump tweeted that it would be “a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” and added, “He is always ‘late,’ but he could now change his image, and quickly.”
Powell has previously stated that the president does not have the legal authority to fire the Federal Reserve chair, citing statutes that protect the independence of the central bank. His current term as Fed chair is set to end in May 2026.
