Donald Trump Criticizes Fed Chair Jerome Powell Following Inflation Remarks

President Donald Trump criticized Federal Reserve Chair Jerome Powell, stating that his “removal cannot come soon enough!” following Powell’s warnings about the effects of Trump’s tariffs.

Powell remarked on April 16 at the Economic Club of Chicago that “Unemployment is expected to rise as the economy decelerates, and inflation may also increase as tariffs are imposed, with some of those costs ultimately borne by the public.”

Powell indicated a potential conflict for the Fed, describing it as a “challenging scenario,” where the aim may be to balance low inflation with a strong economy and job market. While he emphasized that stable prices should be the Fed’s priority, he also signaled that interest rate cuts could occur if the economy dips into a recession.

Typically, the Fed lowers interest rates to invigorate a faltering economy and job market, whereas it raises rates—or maintains them at a higher level—to curb inflation or avoid price spikes.

On April 17, Trump responded via social media, urging Powell to “have lowered interest rates… a long time ago, but he certainly should be lowering them now.”

During his speech, Powell reaffirmed that the Fed’s independence is “enshrined in law” and that decisions are made “based on our best insights and analyses,” without influence from “political pressure.”

Powell remarked, “People can say whatever they wish. That’s not an issue for us. We will operate strictly without consideration for political or any external factors.”

Throughout Trump’s presidency, he consistently exerted pressure on the Federal Reserve. Powell was appointed as board chairman by Trump in February 2018 and was reappointed for a second term in May 2022. Trump previously remarked in January that he understands interest rates better than the Fed.

After the Federal Reserve’s meeting on November 7, Powell was questioned about Trump’s authority to terminate him.

“Not allowed under the law,” Powell replied.

Contributors: Paul Davidson, USA TODAY

(This article was updated with new information.)