Trump Criticizes Federal Reserve’s Performance: If I Want Him to Go, He Cannot Stay

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Trump Claims He Can Remove Fed Chair Powell

The Independence of the Federal Reserve Under Scrutiny

Legal Controversy Surrounds the President’s Authority to Dismiss

When Trump was asked by reporters in the Oval Office about his earlier criticisms on social media regarding Federal Reserve Chair Powell’s slow interest rate cuts, Trump responded, “If I ask him to leave, he will leave. I’m not happy with him, and I’ve let him know that.” He subsequently posted on social media, stating, “The sooner Powell is removed, the better!”

During the White House interview, Trump did not directly address whether he was attempting to dismiss Powell, but he criticized his own appointee from his first term as someone who “manipulates politics” and “has performed terribly.” Trump emphasized that, apart from interest rates, prices of all other commodities (like oil) are declining. He noted that Europe has already started to cut rates, yet Powell has yet to act.

However, the markets did not seem to react violently to Trump’s comments immediately. Investors remain focused on the potential tariff agreements between the U.S., the EU, and Japan.

The Independence of the Federal Reserve Under Scrutiny

Powell’s term is expected to end in May 2026, while his term as a board member extends to February 2028. According to previous reports from Zombit, Powell recently revealed in Chicago the dual threats of tariff policy to inflation and economic growth, emphasizing that the Federal Reserve is not in a hurry to cut rates and is still observing clearer signals in economic trends:

“We are currently in a favorable position to wait for clearer conditions before considering adjustments to our policy stance.”

Nathan Sheets, Chief Economist at Citibank, warned that if the U.S. crosses the red line regarding the independence of its central bank, it could trigger a long-term crisis of economic confidence: “The market’s fluctuations in recent weeks may just be the beginning of a larger recession to come.”

Legal Controversy Surrounds the President’s Authority to Dismiss

Powell also addressed this issue during his interview in Chicago, responding:

“There is currently a Supreme Court case related to this. I don’t believe this will affect the Federal Reserve, but we are closely monitoring it. The independence of the Federal Reserve is legally protected, and according to the statutes, the Chair cannot be dismissed arbitrarily unless there is just cause.”

Bloomberg Economics analysis indicated that if the Supreme Court overturns this precedent, the Federal Reserve would become the only central bank among G7 countries to lose its statutory independence due to non-bank regulatory reasons.