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In a fiery clash mixing politics and economics, former President Donald Trump reignited his feud with Federal Reserve Chair Jerome Powell this week, claiming he could oust the central bank leader over disagreements on interest rates and inflation.
The Showdown: Trump vs. Powell
Trump declared on Truth Social that Powell’s 'termination… cannot come fast enough,' doubling down on years of public criticism. The drama escalated Thursday when Trump told reporters: 'He'll leave if I ask him to.' But here’s the twist: The Fed is an independent body, and presidents don’t have direct authority to fire its chair.
Powell, appointed by Trump in 2018, has held rates steady at 4.25%-4.5% since January. Analysts say Trump’s latest outburst stems from Powell’s recent warning that tariffs on trade partners could force the Fed to choose between fighting inflation and unemployment—a lose-lose scenario.
Why Does This Matter?
Markets are shaky: Investors fear Trump’s unpredictable tariff policies could destabilize global trade. Inflation is cooling: U.S. consumer prices rose just 2.4% in March, nearing the Fed’s 2% target. Powell’s staying put: The Fed chair insists he’ll serve his full term, which ends in 2026.
While Trump strategizes at Mar-a-Lago with ex-Fed officials, experts call his threats 'unprecedented.' Could this clash derail the economy? Stay tuned.
Markets are shaky: Investors fear Trump’s unpredictable tariff policies could destabilize global trade.
