The 'interest' tension between Trump and the Fed is escalating.

The 'interest' tension between Trump and the Fed is escalating.

17.04.2025 17:40

U.S. President Donald Trump stated that Federal Reserve Chairman Jerome Powell is "very late" in lowering interest rates and called for his dismissal.

U.S. President Donald Trump targeted Federal Reserve (Fed) Chairman Jerome Powell, claiming he is 'very late' in lowering interest rates.

"HIS JOB SHOULD BE TERMINATED IMMEDIATELY"

As the European Central Bank (ECB) prepares to lower interest rates for the 7th time, Trump pointed out that Powell is "very late" on this issue, accusing the Fed Chairman of "always acting too late and being wrong." Trump stated that Powell's remarks yesterday were "completely disgraceful," arguing that the U.S. has "enriched" itself through tariffs and that the prices of many products have fallen. Emphasizing that Powell should have lowered interest rates much earlier, Trump said, "Powell's job should be terminated immediately."

Trump demanded the termination of the Fed Chairman he accused of being 'late' in lowering interest rates

HE HAD STATED HE WOULD NOT RESIGN

Powell had stated in a press conference in November 2024 that, according to the law, Trump could not fire him and that he would not resign if asked. Fed Chairman Powell's term ends in 2026.

POWELL'S WARNING OF A 'TOUGH SCENARIO'

Fed Chairman Powell warned yesterday at an event that the bank could find itself in a "tough scenario" where inflation and employment targets are under tension.

Trump demanded the termination of the Fed Chairman he accused of being 'late' in lowering interest rates

Regarding significant policy changes in four different areas: trade, immigration, fiscal policy, and regulation, Powell said, "These policies are still evolving, and their effects on the economy remain quite uncertain." Powell stated, "It is quite likely that tariffs will lead to at least a temporary increase in inflation. Inflationary effects may also be more permanent."

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