Trump Says Powell’s Firing “Can’t Come Soon Enough” in New Fed Clash

The clash between President Donald Trump and Federal Reserve Chairman Jerome Powell has taken another turn following the President’s comments, “Powell’s firing can’t come soon enough.” 

First posted on his Truth Social page and emphasized at an Oval Office press conference, the remark signals Trump’s dissatisfaction with the Federal Reserve’s monetary policy, particularly its slow approach to cutting interest rates.

Trump post (Source: Truth Social)

This clash between the President and Powell exhibits a basic contradiction between presidential authority and the independence of the Federal Reserve, with potential implications for U.S. economic policy.

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Trump’s Push for Control: Rates, Tariffs, and Power

Trump’s criticism focuses on Powell’s hesitation to cut interest rates, which he argues restricts economic growth at the time of his tariff agenda. 

“Powell should have dropped Interest Rates, like the ECB, a long time ago,” the President stated, noting the European Central Bank’s series of rate cuts over the past year. 

He said Powell is “too late and wrong,” labeling his leadership a “complete ‘mess!’”

“If I want him out, he’ll be out of there real fast,” the President commented in his oval office conference.

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Trump’s stand is in line with his claim that the U.S. is “getting RICH ON TARIFFS,” in contrast to Powell’s warnings against inflation from tariffs.

The President’s push for control follows an executive order to regulate Fed bank policy, though excluding interest rate decisions. His comments on removing Powell align with earlier criticism in 2019 and 2020, pointing to the necessity to control monetary policy.

Powell Stands Firm: The Fed Won’t Bow to Trump

Jerome Powell, whose term as Federal Reserve Chairman continues until May 2026, has reaffirmed the Federal Reserve’s independence. He stated that the Fed’s independence is “a matter of law” and that presidential removal is “not permitted.” 

Powell clearly indicated that monetary policy relies on economic data, not political directives, and noted that Trump’s tariffs could drive inflation and lower growth, as previously reported by Ecoinimist.

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The Fed has kept interest rates unchanged in its two 2025 meetings, following a December 2024 cut, with no reductions planned for early May 2025. Powell’s decision is backed by legal precedents in cases like Humphrey’s Executor v. United States, though the Supreme Court may review such protections, leaving one in doubt.

A Nixon-Era Echo: Trump’s Battle for Fed Control

Trump’s statements have raised concerns about the Fed’s credibility and global financial stability. Axios has cautioned that undermining the Fed’s non-political role could destabilize the markets, as betting markets predict a one-in-four probability of Powell’s exit by year-end.

Treasury Secretary Scott Bessent is said to be preparing to interview potential replacements by fall 2025, according to The New York Times, a hint at possible changes.

The battle, reminiscent of tensions during the President Nixon administration, is a show of the delicate balance between political pressure and the central bank’s autonomy. 

As Trump calls for greater economic control, the outcome could impact U.S. monetary policy and market confidence over the next months.