President Donald Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, declaring in a recent press conference, “If I want him out, he’ll be out of there real fast.” Trump’s comments reflect growing frustration with the Fed’s decision to keep interest rates steady despite rising inflation, which he believes is hurting the economy and undermining his policies—particularly on trade and tariffs.
Powell, who was appointed by Trump in 2018, has repeatedly stressed the importance of the Fed’s independence and signaled no intention of stepping down before his term ends in May 2026. Legal experts have also noted that the president does not have the authority to fire a Federal Reserve Chair without cause, warning that any such move would likely trigger a constitutional crisis and destabilize financial markets.
The situation has drawn strong reactions from lawmakers. Senator Elizabeth Warren warned that firing Powell could cause a major stock market crash and damage international trust in U.S. financial leadership. She called the idea both reckless and dangerous.
Trump, however, has doubled down, accusing Powell of “playing politics” with monetary policy. The former president has previously expressed a desire for more executive control over the Federal Reserve, which he argues should be more responsive to the needs of the administration.
Amid ongoing economic uncertainty, the Fed faces intense pressure to balance inflation control with economic growth. Powell has remained firm that decisions are based on economic data, not political influence.
As the 2024 election campaign continues, the battle over the Fed’s independence has become a central flashpoint in Trump’s broader push to reshape U.S. institutions and consolidate executive power.
