Trump Criticizes Fed Chair Powell: ‘I Can’t Wait for His Termination’ – CNN Business Insights

Trump’s Tensions with Fed Chair Powell

Recently, former President Donald Trump has intensified his criticism of Jerome Powell, the Chair of the Federal Reserve. He’s called for Powell’s removal, arguing that the Fed is not acting quickly enough to cut interest rates. This criticism comes just after Powell issued warnings about the impact of Trump’s tariffs on the economy, which could lead to inflation and unemployment.

On social media, Trump claimed that the U.S. central bank is falling behind the European Central Bank, which is cutting rates again. He referred to Powell as "always TOO LATE AND WRONG" and expressed his frustration, saying that Powell’s termination "cannot come fast enough."

Powell’s remarks highlighted the unexpected economic changes brought by Trump’s tariffs, which he said are the most significant seen in decades. This situation puts the Fed in a tough spot, facing potential stagflation, a combination of stagnant growth and inflation.

Several Fed officials have echoed Powell’s concerns, noting that tariffs could push prices up and jobs down. Billionaire investor Ray Dalio has even warned that the U.S. economy might already be sliding into a recession.

Powell has a complex history with Trump. Appointed by Trump in 2018 and reappointed by President Biden in 2021, Powell’s tenure has been marked by friction, especially regarding interest rates. Trump has previously labeled Powell as "the enemy" and has suggested he has the right to remove him. Yet, he has also praised him when the Fed acted to lower rates during economic crises.

Despite Trump’s threats, Powell has firmly stated that legally, he cannot be removed at will, emphasizing Fed independence. This status has come under scrutiny, especially as the Supreme Court is revisiting a case that could redefine presidential authority over independent agencies.

The case, Humphrey’s Executor v. United States, established the limits of presidential power when it comes to firing agency heads. The court ruled that the president does not have unlimited removal power. This precedent is now being challenged, indicating a potential shift in the balance of power.

As discussions continue about Fed independence and economic strategies, user reactions on social media show a mix of concern and curiosity about the implications for the economy. With inflation rates still a hot topic, many people are watching closely to see how these tensions will unfold.

For an in-depth look at the foundations of Fed independence and its role in the economy, you can check resources from the Brookings Institution.

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