Trump Must Resolve His Conflict with Jerome Powell Promptly—One Way or Another
President Donald Trump must either remove Federal Reserve Chair Jerome Powell, as he’s hinted at, or stop criticizing him in public.
This is crucial for the mental well-being of Americans, not to mention the stability of their 401ks.
On Monday, in a fit of anger over Powell’s unwillingness to cut interest rates, Trump took to TruthSocial to label the Fed chair a “major loser,” continuing a pattern of escalating attacks.
It’s no surprise that the Dow plummeted nearly 1,000 points.
The tension between them has been brewing since Powell’s appointment in 2018, with rumors swirling since January about Trump seeking a way to oust him.
Now, the dysfunction is reaching a breaking point, with everyday Americans bearing the consequences.
After Powell informed the Economic Club of Chicago that tariffs could result in price increases and made it clear that the Fed had no intention of lowering rates, Trump exclaimed that his “termination could not come fast enough,” cautioning: “I’m not satisfied with him. I’ve let him know, and — if I want him out, he’ll be gone quickly, believe me.”
White House economic adviser Kevin Hassett took a more measured approach, stating that Trump and his team “will continue to evaluate [the] situation” concerning Powell’s future.
It’s time for the president to either make good on his threats to oust Powell or keep his negative remarks to himself.
Though Powell’s term concludes in May 2026, he can be dismissed for cause before that date. However, determining what counts as “cause” is an issue that the Supreme Court will need to clarify.
If Trump is unable or unwilling to replace Powell, he should temper his criticisms and avoid making investors — who are already navigating the chaos and unpredictability stemming from the trade war initiated by Trump — even more anxious.
Trump believes that lower rates would stimulate growth and ease a stock market that has been fluctuating wildly since he announced (and then temporarily postponed) sweeping tariffs.
His public confrontation with Powell is simply causing more harm.
Americans don’t want to see their retirement savings decimate every time their president clashes with his own appointee.
Moreover, Wall Street certainly dislikes the uncertainty. The ongoing speculation about Powell’s possible exit — and the future of Fed policy — is creating turmoil.
Mr. President, it is time to resolve this situation: either dismiss Powell or keep your criticisms to yourself.
