Trump criticises Fed Chairman Powell over interest rate policy
The President of the USA, Donald Trump, admitted on Thursday that the chairman of the American Federal Reserve (Fed), Jerome Powell, cannot be quickly removed from his position. Trump expresses impatience with Powell's policy, especially in the context of the lack of interest rate cuts.
Jerome Powell's term as Fed Chairman ends in May 2026. After Trump's victory in the presidential elections, Powell assured that he would not leave his position, even if the new administration tried to pressure him on this matter.
Trump speaks out on Fed chairman
On Thursday, a post was published on Trump's profile on the Truth Social platform. It clearly shows that he is impatient with the actions of the US central bank's president. According to Trump, the Fed Chairman "should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now."
"Powell’s termination cannot come fast enough!" added Trump.
Bloomberg added that when asked to explain this post, the White House did not respond to a request for comment. After the November presidential elections, Powell said that removing him or any other Fed representatives before the end of their terms would be illegal.
Reuters reminds us that the central bank's interest rate in the USA has not changed since December of the previous year. Trump criticised Powell following his Wednesday remarks, in which the Fed Chair emphasised that the central bank’s independence is broadly acknowledged and backed by key decision-makers in Washington and Congress.
Wednesday's speech by Powell was the first since Trump's suspension of some tariffs. The Chairman of the Federal Reserve stated that the market turbulence in recent weeks is a response to "dynamic changes" in the administration's trade policy and not a sign of problems that would require Fed intervention.
