President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, declaring on April 17, 2025, that Powell’s “termination cannot come fast enough.” In a fiery social media post, Trump lambasted the Fed for its delayed response to cutting interest rates, accusing Powell of being “too late and wrong” in his monetary policy decisions.
Trump’s post highlighted several key economic concerns. He pointed to the European Central Bank (ECB), which recently lowered its interest rates for the seventh time, as a model for what the Fed should be doing. Trump argued that the U.S. is missing out on economic growth by maintaining higher rates, which he claims are driving up costs for American consumers—specifically citing the rising price of groceries like eggs.
He also noted that oil prices are down, suggesting that lower energy costs should ease inflationary pressures, making the Fed’s reluctance to cut rates even more unjustifiable in his view. Trump further tied the Fed’s inaction to the broader impact of his tariff policies, claiming that the U.S. is “getting rich on tariffs” but needs lower interest rates to maximize economic gains.
The Impact of Trump’s Tariff Policies
The backdrop to Trump’s comments is a volatile economic landscape shaped by his recent trade policies. In early April 2025, Trump implemented a 10% universal tariff on imports, followed by a dramatic escalation of tariffs on China to 125%, while pausing reciprocal tariffs on other nations for 90 days.
Additionally, a 25% tariff on Venezuela and countries purchasing its oil was introduced, further complicating global trade dynamics. These measures have sparked widespread market unrest, with global equity markets experiencing sharp sell-offs due to fears of a potential economic slowdown.
The tariffs, which affect over $380 billion worth of trade, have been estimated to increase the average U.S. household’s tax burden by nearly $1,300 in 2025—a figure that has fueled debate over the economic wisdom of Trump’s trade war.
A History of Tension with Powell
Trump’s dissatisfaction with Powell is not new. On April 4, 2025, he publicly urged Powell to cut interest rates, accusing the Fed Chair of “playing politics” by not acting swiftly enough. The current U.S. benchmark interest rate stands at 4.5%, a level Trump and his supporters argue is stifling growth, especially when other major economies like the eurozone are easing monetary policy.
The ECB’s recent rate cut of 25 basis points, announced on March 6, 2025, has been part of a broader strategy to stimulate borrowing and investment in the euro area, a move Trump believes the U.S. should emulate to remain competitive.
Public reaction to Trump’s latest remarks has been polarized, as seen on social media platforms. Some users agree with Trump, arguing that Powell’s cautious approach is holding back economic growth and that interest rates should have been slashed earlier to support businesses and consumers.
Others, however, have criticized Trump’s interference, asserting that Powell is simply doing his job by maintaining the Fed’s independence and focusing on long-term economic stability rather than short-term political pressures. Critics also point out the irony of Trump’s stance, noting that he appointed Powell as Fed Chair in 2018 during his first term.
Economic and Political Implications
Looking ahead, Trump’s aggressive rhetoric and policy actions are likely to keep financial markets on edge. His tariff policies, while aimed at boosting domestic industries and reducing reliance on foreign goods, risk further inflating consumer prices, a concern Powell has indirectly acknowledged by emphasizing the Fed’s focus on inflation data and monetary policy transmission.
If inflationary pressures mount due to tariffs, the Fed may resist cutting rates, potentially deepening the rift between Trump and Powell.
There is also the possibility of more direct action from Trump. While the Federal Reserve operates independently, Trump has previously floated the idea of exerting greater control over the central bank, a move that would likely face significant legal and political hurdles.
However, his repeated calls for Powell’s termination could signal an intent to replace him with a more compliant Fed Chair if the opportunity arises—Powell’s term ends in May 2026, but Trump might explore other avenues to pressure the Fed sooner.
Economic Risks and the Road Ahead
Economically, the combination of high tariffs and a relatively high interest rate environment could lead to slower growth in the U.S. if global trade tensions escalate further. The pause on tariffs for countries other than China may provide temporary relief, but the 125% tariff on Chinese goods is almost certain to raise costs for U.S. businesses and consumers, potentially offsetting any benefits from lower oil prices.
Meanwhile, the Fed is expected to closely monitor incoming data, particularly on inflation and employment, before making any significant moves on interest rates. A rate cut could come later in 2025 if inflationary pressures ease, but for now, Powell appears committed to a cautious approach—a stance that will likely keep him at odds with the White House.
