After repeatedly calling on Federal Reserve Chairman Jerome Powell to cut interest rates, President Donald Trump has amplified his rhetoric in response to remarks the central banker made on Wednesday.
Stocks plummeted after Powell’s latest gloomy economic outlook, prompting Trump to issue a scathing rebuke the following day.
As the Daily Wire reported:
“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,” Trump posted on his social media network. “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!”
ADVERTISEMENTTrump has repeatedly called for Powell to cut interest rates, saying that the Fed chair was “playing politics” with the economy earlier this month.
On Wednesday, Powell said that he believed Trump’s tariffs would cause inflation. Trump has imposed a baseline 10% tariff on most American trading partners, a 145% tariff on Chinese goods, and select tariffs on other products, such as automobiles.
Powell’s remarks and the president’s response have fueled extensive social media commentary:
‼️🇺🇸 JUST NOW: Fed Chair Jerome Powell says the U.S. economy remains SOLID despite ongoing uncertainty. 😎
He could lower rates to spur the economy but isn't. 👀
Should we END THE FED? 🤔 pic.twitter.com/NUJDXl94Fq
— Diligent Denizen 🇺🇸 (@DiligentDenizen) April 16, 2025
Don’t worry about Jerome Powell.
End the Fed.
Fix the money.
Before it’s “too late.” pic.twitter.com/2DoFjRpBgq
— Being Libertarian (@beinlibertarian) April 17, 2025
Why is the human money printer still around? Jerome Powell refuses to lower interest rates like he did to bail out Biden. Can Powell be fired?
pic.twitter.com/FLc5MTpMHn— Colette Harrington (@sweetcarolinatv) April 16, 2025
Axios reported on the feasibility of a possible Trump effort to oust Powell:
Scholars often point to a 1935 Supreme Court decision they say backs the Federal Reserve Act’s cause for termination clause, the Wall Street Journal reported.
In the case, Humphrey’s Executor v. United States, the high court blocked then-President Franklin D. Roosevelt from booting a commissioner off the Federal Trade Commission.
That precedent prohibits commissioners at independent agencies from being fired at will.
ADVERTISEMENTState of play: The Supreme Court will soon hear a case that could alter or undermine that protection, Axios’ Courtenay Brown reported. However, Powell doesn’t believe that case will apply to the Fed.
“Generally speaking, Fed independence is very widely understood and supported in Washington — in Congress, where it really matters,” Powell said Wednesday.
Yes, but: Trump’s Justice Department signaled earlier this year that it would seek to overturn the Humphrey’s Executor precedent, which would significantly expand the executive branch’s power.
Here’s some additional coverage of the developing situation:
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