Three Times a Day, Trump Lambasts Fed: Fed Should Have Cut Rates Earlier, Powell Playing Politics, Should Have Been Fired Long Ago

By: blockbeats|2025/04/18 06:30:04
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Original Title: "Trump Calls for Fed to Cut Rates, Says Powell's Job Is Safe 'for Now'"
Original Authors: Zhang Yaqi, Li Dan, Wall Street News

While the European Central Bank has been cutting rates repeatedly, Federal Reserve Chairman Powell has been reluctant to follow suit. U.S. President Trump seems to be getting impatient, calling out Powell three times in one day and demanding a rate cut, even going as far as saying Powell should have been fired long ago.

On Thursday morning, Trump took to social media posting:

· Always too late and wrong, Federal Reserve Chairman Jerome Powell yesterday released a report, which was again a typical, complete "confusion"!

· Powell should have lowered rates like the European Central Bank, but he should do it now for sure. The sooner Powell resigns, the better!

During Thursday's midday trading session, Trump called out Powell two more times.

Trump said, "I don't think Powell's doing a good job. If I wanted to, I would be able to fire him. Powell is not making me happy. He is always very late to act."

Trump accused Powell of playing politics, saying he is very bad at it. U.S. rates have gone up, and rates should be going down. Powell should cut rates. Trump also used Europe as a comparison, noting that Europe is cutting rates.

After a few minutes, Trump "attacked" Powell again, stating that the Fed should cut rates, which is what the Fed owes the American people. Powell will face significant political pressure.

Trump said Powell's only good move would be to cut rates. If Europe cuts rates and the Fed does nothing, the U.S. will be at a disadvantage. Costs will go down, and U.S. inflation will be very low.

Trump's comments were clearly in response to Powell's hawkish statement from the night before. On Wednesday, Powell reiterated his stance from over a week ago, stating that the Fed "can certainly wait until [the situation] is more clear and then consider adjusting our policy stance." Powell believes that the Fed should avoid a sustained rise in inflation due to Trump's policies such as tariffs, which introduce a high level of uncertainty to the economy.

In fact, Trump has long been dissatisfied with Powell. Trump believes that Powell is "slow" and "acts too slowly" in fighting inflation. He has repeatedly urged for rate cuts on social media, asking Powell to "move quickly."

US Supreme Court Decision May Affect Powell's Tenure

On Monday, rumors circulated from the White House about a possible Fed "leadership change." U.S. Treasury Secretary Mnuchin stated that he and Trump "have been discussing the person who will be the next Federal Reserve chairman and plan to begin interviewing potential candidates in the fall.

This statement has reignited speculation about changes in the Fed's leadership. Renowned financial analyst Jim Bianco believes that Powell may face two fates: either be directly dismissed by Trump, or be sidelined, as Powell's successor's nominator can make statements to undermine his authority.

Notably, a Supreme Court ruling in May this year could become a "black swan" event this summer. Trump's administration is preparing to ask the Supreme Court to dismiss two senior officials from federal agencies.

Some analysts point out that the final ruling in this case is a test of "whether Trump has the power to dismiss Fed Chair Powell"—although the current Federal Reserve Act stipulates that the dismissal of the Fed Chair must have "just cause," overturning the precedent of the "Humphrey's Executor" case would undoubtedly greatly weaken this protective barrier and open the door to presidential intervention in the Fed's operations.

In other words, by changing the rules of law, Trump may be able to "easily" dismiss the Fed Chair in the future.

On Wednesday, when asked about the political threats facing the Fed Chair position, Powell said that the Fed's independence is granted by U.S. law, and the government cannot unjustifiably remove Fed officials. He said, "The independence of the Fed is a legal issue."

Powell stated that the Fed will continue to do its job without political influence. Regardless of any political pressure, the Fed will carry out its responsibilities.

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