President Donald Trump on Thursday escalated his pressure campaign on Federal Reserve Chair Jerome Powell, calling him “always too late and wrong” and saying he should be fired.
“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’” Trump said in an early-morning post on his social media site, Truth Social. He was referring to the European Central Bank, which cut interest rates shortly after Trump’s post.
“Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” Trump added. “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”
Egg prices just hit a record high, and data from U.S. Customs and Border Protection indicates that early revenue from tariffs has come in far under Trump’s projections. A president does not have the legal authority to fire a Fed chair; Powell’s second four-year term is scheduled to end in 2028.
Trump’s comments came a day after Powell warned that Trump’s tariffs were “highly likely” to fuel inflation and suggested the central bank will wait to gauge their effect before lowering interest rates.
“Tariffs are highly likely to generate at least a temporary rise in inflation,” Powell said during a speech at the Economic Club of Chicago. “The inflationary effects could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored.”
“For the time being,” Powell said, “we are well-positioned to wait for greater clarity before considering any adjustments to our policy stance.”
Powell said even the central bank was surprised by the size of the duties announced by the Trump administration.
“The level of the tariff increases announced so far is significantly larger than anticipated,” he said. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”