President Donald Trump launched a fresh offensive against Federal Reserve Chairman Jerome Powell Monday, calling him a “major loser” and threatening to fire him if he refuses to slash interest rates.
“‘Preemptive Cuts’ in Interest Rates are being called for by many,” the president wrote on Truth Social. “With Energy Costs way down, food prices (including Biden’s egg disaster!) substantially lower, and most other ‘things’ trending down, there is virtually No Inflation.”
The White House is seeking to reduce interest rates in order to offset the damage to the stock market caused by Trump’s tariff policies. Trump has also floated the idea of removing Powell if he does not comply.
“There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump added. “Powell has always been ‘To Late [sic],’ except when it came to the Election period when he lowered in order to help Sleepy Joe Biden, later Kamala, get elected. How did that work out?”
A 90-year-old Supreme Court precedent established legal protections for the Federal Reserve chair, who cannot be fired for anything other than misconduct or severe neglect of duty. The Federal Reserve operates independently from the United States government.
“We’re not removable except for cause,” Powell told a meeting of economists in Chicago last week. “Fed independence has pretty broad support across both political parties and on both sides of the hill.”
Despite the legal protections in place, Kevin Hassett, chair of the White House National Economic Council, said on Friday that the administration is currently exploring options to fire Powell before his term expires in 2026.
The Fed has so far refused to cut rates, citing market uncertainty and claiming that doing so would lead to a surge in inflation.
“Our obligation is to keep longer-term inflation expectations well-anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said.
His remarks angered Trump, who told reporters: “I’m not happy with him. If I want him out, he’ll be out of there real fast, believe me.”
Powell said that even if the president managed to circumvent the Supreme Court’s 1935 ruling, he believes the Court would find another mechanism to keep him in his role.
The 72-year-old chairman is the sixteenth chair of the Federal Reserve. Former President Barack Obama first appointed him to the Federal Reserve in 2012. Trump then appointed him chairman in 2018, and former President Joe Biden reappointed him for the role in 2022.
