Jerome Powell, the chairman of the US Federal Reserve, is being pushed against the wall by President Trump. President Donald Trump said Federal Reserve Chair Jerome Powell’s termination from his position can’t come quickly enough.

Trump has been an advocate of lower interest rates and has again argued that the US central bank should have lowered interest rates already this year, and in any case, should do so now.

In a statement on his Truth Social platform, Trump stated that Powell is once again late in cutting rates, despite the fact that other world banks are doing so and oil and egg prices are decreasing.

Trump wrote – “The ECB is expected to cut interest rates for the 7th time, and yet, “Too Late” Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete “mess!” Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”

It was unclear whether the post implied Trump was referring to the end of Powell’s term or aiming to oust Powell as chair. Powell’s term is set to expire in May 2026 while his term as a governor lasts until February 2028.

Inflation in the US is trending lower, but the next immediate challenge for the Fed is the impact of tariffs that may lead to the re-emergence of inflation.

Also Read – US CPI Data Released: Annual inflation rate in the US eased for a second consecutive month

Yesterday, while speaking at The Economics Club of Chicago, Chair Powell warned that higher tariffs could increase inflation and hinder growth, undermining the Fed’s efforts to strike a balance between price stability and employment.

“As we learn more, we will continue to update our assessment, particularly about whether any price increases sparked by the tariffs appear to spark only a temporary or a more persistent rise in inflation. For now, he said, the Fed could keep its benchmark interest rate steady to wait for greater clarity before considering any adjustments to our policy stance,” Powell said.

The Federal Reserve’s benchmark interest rate has remained unchanged at 4.25%-4.5%, since December.

David Russell, Global Head of Market Strategy at TradeStation. “Jerome Powell just laid down the law with Trump. He emphasized that tariffs were significantly larger than expected, which could lead to persistent higher inflation and lower growth. It was a clear warning about stagflation, and a declaration that the Fed won’t enable the White House with rate cuts.”

Before becoming the president for the second time, in December 2024, in an interview, Trump stated that he will not attempt to unseat Federal Reserve Chair Jerome Powell when he assumes office in January. “No, I don’t believe that. When asked if he would try to dismiss Powell, whose term expires in 2026, Trump responded, “I don’t see it.”

At that time, when asked on his removal by the President, Powell said he would refuse to leave office early if Trump tried to oust him, arguing that removing him, or any of the other Fed governors, ahead of the end of their terms is “not permitted under the law.”

Incidentally, President Donald Trump appointed Jerome Powell to head the Federal Reserve in 2017, denying Janet Yellen a second term, expressing confidence that the fellow Republican would be able to manage and guide the largest economy in the world through “any challenges” with his leadership and expertise.