BREAKING: Trump Calls for US Federal Reserve Chair’s Removal, Slams Powell for Refusing to Slash Interest Rates
US President Donald Trump has launched a fresh tirade against Federal Reserve Chair Jerome Powell, declaring on social media that “his termination cannot come fast enough!”, after Powell resisted calls to cut interest rates despite growing global economic uncertainty.
Trump’s comments came as the European Central Bank (ECB) cut interest rates for the third time this year, citing “rising trade tensions” as a key reason for its decision to reduce the benchmark rate to 2.25%.
“Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now,” Trump posted.
Despite Trump’s claims that US consumers are benefitting from his aggressive tariff regime, official figures contradict him, with egg prices rising to $6.23 per dozen, and the BBC reporting no verifiable evidence that tariffs are enriching the country.
The President, who nominated Powell in 2017 to succeed Janet Yellen, accused him of being “always TOO LATE AND WRONG” on cutting rates, claiming the US is getting “RICH ON TARIFFS”.
Powell, however, warned on Wednesday that the economic cost of tariffs would be substantial.
“The level of the tariff increases announced so far is significantly larger than anticipated,” Powell stated.
“The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
The Fed’s sober assessment follows continued market volatility, fuelled by Trump’s decision to impose sweeping tariffs on goods from China and other trading partners. US tariffs on Chinese goods now stand at 145%, with some exemptions, while the total levies could reach 245% on specific imports when combined with previous rounds.
Meanwhile, ECB President Christine Lagarde came to Powell’s defence, stressing the professionalism and mutual respect among central bankers.
“I have a lot of respect for my friend and esteemed colleague Jay Powell,” Lagarde said.
While Trump continues to push for cheaper borrowing costs, economists warn that his trade policies are pushing the US economy closer to stagflation—a toxic mix of high inflation and slowing growth.
The International Monetary Fund (IMF) has maintained there is no global recession yet, but caution remains high as US-China tensions deepen and domestic political pressures mount ahead of the presidential elections.
