Trump urges the Federal Reserve to cut interest rates again, and wants to dismiss Powell?

According to Zhitong Finance APP, U.S. President Donald Trump has once again criticized Federal Reserve Chairman Jerome Powell, stating that the Federal Reserve should have lowered interest rates long ago and that Powell's dismissal "should have come faster." Trump posted on social media: "The European Central Bank is expected to make its seventh rate cut, yet Federal Reserve Chairman Powell's actions are 'too late'; he always acts too late and makes the wrong decisions. His remarks yesterday were a typical, complete 'mess'! Currently, oil prices are down, grocery prices are also down, and the U.S. is profiting greatly from tariffs. The Federal Reserve should have lowered interest rates like the European Central Bank long ago. It should have been done a long time ago, and now the Federal Reserve definitely should lower interest rates. It wouldn't be too much for Powell to be fired even faster!"

It is still unclear whether Trump's remarks refer to Powell's term coming to an end or if he wants to remove Powell from the position of Federal Reserve Chairman. The White House has not commented.

Previously, Trump has repeatedly urged the Federal Reserve to cut interest rates. On March 19, the Federal Reserve concluded a two-day monetary policy meeting, announcing that it would maintain the federal funds rate target range at 4.25% to 4.50%. This decision drew Trump's dissatisfaction, and he posted on social media that the Federal Reserve should better cut interest rates, as the impact of U.S. tariffs is gradually penetrating the economy. On March 24, Trump reiterated his hope for the Federal Reserve to lower interest rates.

Earlier this month, Trump again posted that now is an excellent time for Federal Reserve Chairman Powell to cut interest rates. However, on the same day, Powell stated that U.S. tariffs could lead to rising inflation, slowing economic growth, and an increased risk of unemployment. Powell indicated that it is "too early" to adjust monetary policy regarding tariffs.

Powell's remarks on Wednesday continued his cautious stance. In a public Q&A that day, Powell mentioned that tariff measures could temporarily push up inflation, posing challenges to the central bank's two main policy goals of price stability and full employment. He stated, "In some cases, we may find ourselves in a situation where there is tension between the goals." "At that time, we need to assess the extent to which the economy deviates from each target and the time differences required to achieve different goals."

This statement has been interpreted by the market as an increase in uncertainty regarding the monetary policy path. Powell did not explicitly state his views on the direction of interest rates but pointed out: "For now, we have ample space to hold policy steady and wait for clearer economic signals before considering whether to adjust our policy stance."

The conflict between Trump and Powell seems to be becoming increasingly pronounced. Meanwhile, Powell's future faces growing uncertainty. On Monday, U.S. Treasury Secretary Janet Yellen stated in an interview that she and Trump have "always been considering" candidates for the next Federal Reserve Chairman and plan to begin interviewing potential candidates in the fall The current term of Federal Reserve Chairman Jerome Powell will end in May 2026. Bessenet's remarks have sparked speculation in the market about changes in the Federal Reserve's leadership. Noted financial analyst Jim Bianco pointed out that Powell may face two fates—either being directly dismissed by the president or being effectively sidelined. It is reported that Bessenet proposed an alternative last year to establish a "shadow Federal Reserve chairman," meaning appointing Powell's successor a few months in advance. This nominee could regularly appear on financial television programs, acting as a "paper quarterback" to criticize Powell's every speech and decision, thereby undermining his authority