‘Termination!’ Trump Lashes Out at Fed Chief in Early Morning Rant After Brutal Rebuke of Tariffs
President Donald Trump lashed out at Federal Reserve Chairman Jerome Powell in an early morning rant following Powell’s remarks on the worsening impact of Trump’s tariff policies.
Early Thursday morning, Trump posted a message on Truth Social that carried the strong suggestion that Powell’s days in the position of Fed chair are numbered:
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!
The message came less than 24 hours after Powell’s speech and Q&A Powell at the Economic Club of Chicago, during which he delivered some bad news for Trump on tariffs — and on his willingness to bow to “political pressure”:
Looking forward, the new Administration is in the process of implementing substantial policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation. Those policies are still evolving, and their effects on the economy remain highly uncertain. As we learn more, we will continue to update our assessment. The level of the tariff increases announced so far is significantly larger than anticipated. The same is likely to be true of the economic effects, which will include higher inflation and slower growth. Both survey- and market-based measures of near-term inflation expectations have moved up significantly, with survey participants pointing to tariffs. Survey measures of longer-term inflation expectations, for the most part, appear to remain well anchored; market-based breakevens continue to run close to 2 percent.
As we gain a better understanding of the policy changes, we will have a better sense of the implications for the economy, and hence for monetary policy. Tariffs are highly likely to generate at least a temporary rise in inflation. The inflationary effects could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored.
Powell went on to say that “We’re never going to be influenced by any political pressure. People can say whatever they want. That’s fine. That’s not a problem. But we will do what we do. Strictly without consideration of political or any other extraneous factors.”
The independence of the Federal Reserve chair is a longstanding norm, but experts say it is unclear what would happen if Trump were to try to fire Powell.
