Trump blasts Fed chair Powell and looks forward to his ‘termination’

President Donald Trump blasted the Federal Reserve for not lowering interest rates and said the central bank chair’s “termination cannot come fast enough,” ratcheting up the White House’s public pressure on the central bank.

The message, posted on Truth Social early Thursday, came one day after Fed Chair Jerome H. Powell warned that the administration’s trade war was “highly likely” to spur a temporary rise in inflation, with the potential for longer-lasting effects. Markets tanked on Powell’s remarks.

“Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’” Trump wrote. Referring to interest rates, he added, “He should certainly lower them now. Powell’s termination cannot come fast enough!”

The Fed declined to comment.

Economic officials around the world are grappling with the consequences of Trump’s tariff policies. The European Central Bank cut rates Thursday amid growing tariff uncertainty. Policymakers have cut rates multiple times since last summer but said “the outlook for growth has deteriorated owing to rising trade tensions.”

In the United States, the Fed has predicted higher prices and slower economic growth, and Wall Street analysts say the tariffs announced this month by Trump make a recession far more likely. But an economic slump hasn’t appeared in the data yet.

Small-scale job losses or the mere anticipation that prices could rise wouldn’t prompt the Fed to cut rates. It’s also too soon to know how significant cuts to the federal government will affect the job market, Powell said.

The Fed closely guards its independence from politics so it can make decisions with the long-term health of the economy in mind. Trump has repeatedly called for the Fed to lower rates and signaled that he does not want Powell to continue as Fed chair. During his first term, Trump’s lawyers concluded that the president could not fire the Fed chief without cause, although a federal court recently gave Trump a partial win in his efforts to remove the leaders of two other independent agencies.

Trump has continued to lash out at Powell over the past few weeks, as central bankers predict tariffs will probably reignite the kind of inflation they have been wrestling for years. Powell’s term as chair ends in May 2026, and he has repeatedly said he plans to see that time through.

In remarks at the Economic Club of Chicago on Wednesday, Powell said “our independence is a matter of law.” He noted that officials serve long terms and that Fed independence has broad support among Republicans and Democrats alike.

“We’re protected under the law,” he said. “Congress could change that law, but I don’t think there’s any danger of that.”

Trump has continued to lash out at Powell over the past few weeks, as central bankers predict tariffs will probably reignite the kind of inflation they have been wrestling for years. Powell’s term as chair ends in May 2026, and he has repeatedly said he plans to see that time through.

The Trump administration will nominate his replacement eventually. Treasury Secretary Scott Bessent told Bloomberg TV on Monday that interviews for potential candidates will start in the fall.

“We think about it all the time,” Bessent said.

But for now, Powell is the face of the Fed’s policymaking. This week, he said many of the administration’s policies—on trade, immigration, fiscal matters and regulation—are still evolving. But higher inflation and slower growth are in store, he said, pushing central bankers further from their goals of stable prices and a prosperous job market. For example, supply-chain snarls from the trade war could lead to price hikes that last longer than a one-time bump.

“I do think we’ll be moving away from those goals probably for the balance of this year, or at least not making any progress,” Powell said.

Powell also said that as the Fed sets interest rates, its two mandates—stable prices and maximum employment —could be “in tension” with each other. Typically, the Fed raises interest rates to combat inflation by making it more expensive to get all types of loans. The Fed lowers interest rates if it fears the economy is slowing too much and needs a boost. That could prove difficult if inflation is rising in the midst of a broader downturn.