President Trump has unleashed a scathing critique of Federal Reserve Chair Jerome Powell, blaming him for the recent stock market decline due to his refusal to cut interest rates. The former president’s harsh words come as European central banks are already cutting rates, furthering his frustration with Powell’s “too late” approach that threatens American economic prosperity.
Trump Demands Action as Markets Falter
President Donald Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, explicitly calling for his termination over what he perceives as poor economic leadership. Trump’s frustration centers on Powell’s reluctance to lower interest rates while the stock market experiences concerning fluctuations.
Trump spent half his speech roasting Powell – called him a fool, demanded immediate rate cuts, and even threatened to fire him (which he legally can’t).
Tariffs took a back seat. Trump’s clearly on a mission to break the Fed.
Markets trying to go risk-on off this. $SOL pic.twitter.com/axvuNM4UaF
— todoyago (@todoyago) April 17, 2025
The former president highlighted that European central banks are already implementing rate cuts, placing American markets at a competitive disadvantage. Trump nominated Powell to his position in 2017, but their relationship soured as Powell repeatedly resisted Trump’s calls for more aggressive monetary policies.
Powell Defends Fed Independence Against Political Pressure
Jerome Powell has stood firmly against Trump’s criticisms, emphasizing that the Federal Reserve makes decisions based on economic data rather than political considerations. Powell, whose term extends until 2026 after being renominated by President Biden, has consistently defended the Fed’s autonomy from executive branch influence.
Meanwhile, @realDonaldTrump is furious that Powell ignored his frequent demands for a swift lowering of interest rates that could make it easier for Americans to borrow to buy homes and could improve consumer sentiment and boost stocks. Here's what Powell had said: pic.twitter.com/IVnOWQrg5t
— The Squirrels (@thesquirrelsin) April 18, 2025
The Fed Chair specifically countered Trump’s economic vision, suggesting that proposed tariffs could harm the economy through inflation and job losses. This financial assessment directly challenges Trump’s trade policies and justifies Powell’s cautious approach to interest rate adjustments.
Constitutional Standoff Over Federal Reserve Control
Trump’s threats to fire Powell highlight a deeper constitutional question about presidential authority over the Federal Reserve system. Powell has publicly stated that the president lacks the legal authority to remove him, establishing a clear boundary against executive overreach into monetary policy.
“Generally speaking, Fed independence is very widely understood and supported in Washington, in Congress, where it really matters.”
The ongoing tension between Trump and Powell represents a fundamental clash between political expediency and economic orthodoxy. This conflict underscores the delicate balance between presidential economic priorities and the independent institution designed to protect long-term financial stability against short-term political pressures.
Sources:
https://www.theblaze.com/news/trump-fed-chair-powell-fire
https://www.theblaze.com/news/trump-fed-chair-powell-fire