Jerome Powell has once again found himself at the center of political controversy. Former President Donald Trump sharply criticized the Federal Reserve Chair, declaring that Jerome Powell’s “termination cannot come fast enough.” The statement followed Powell’s comments about the negative economic effects of Trump’s trade policies.
In a fiery social media post, Trump claimed the Federal Reserve, under Jerome Powell, was too slow to act. He compared it unfavorably to the European Central Bank, which announced its seventh rate cut in a year. “Jerome Powell of the Fed, who is always too late and wrong, issued another complete mess,” Trump wrote.
At an economic forum in Chicago, Jerome Powell had addressed the challenges the Fed faces due to major policy shifts under the Trump administration. He warned that sweeping tariffs have created economic uncertainty. Powell said these changes are larger than anticipated and unlike anything in recent memory.
While Jerome Powell’s concerns align with other Fed officials, Trump has often taken a harsher stance. He accused Powell of poor decision-making as early as 2018, even calling him “the enemy” in 2019. Despite his criticism, Trump once praised Powell for cutting rates during the COVID-19 market crash.
Trump has repeatedly floated the idea of firing Powell but legal protections complicate that move. As head of an independent agency, Powell can’t be removed at will. However, Trump’s firing of other independent agency members has raised new legal questions. This includes dismissals at the Federal Trade Commission and the National Credit Union Administration.
The Supreme Court may soon revisit the 1935 Humphrey’s Executor case, which limits presidential power over independent agency heads. Trump’s administration has argued that this precedent should be overturned, potentially threatening the Fed’s autonomy.
Jerome Powell, originally appointed by Trump in 2018 and reappointed by Biden in 2021, is set to serve until 2026. Despite political pressure, Powell insists he will complete his term.