Donald Trump is pointing fingers at Federal Reserve Chair Jerome Powell for the economic mess triggered by his own tariff-heavy trade policies — and he’s demanding Powell be fired.
In a Thursday morning rant on Truth Social, Trump ripped into Powell for not slashing interest rates fast enough as markets wobbled and fears of stagflation grew.
“The [European Central Bank] 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 typically complete ‘mess!’” the president wrote.
Despite rising concerns about the impact of his tariffs, Trump insisted everything is fine — claiming prices are dropping and the country is, in his words, “getting RICH ON TARRIFS.” He argued the Fed should have followed Europe’s lead and cut rates aggressively.
“Powell’s termination cannot come fast enough!” Trump added.
Trump’s outburst came one day after Powell warned the U.S. economy may be slipping into stagflation — a painful mix of rising prices and slowing growth. Powell said the economy could be “moving away” from its goals of stable prices and full employment and added he doesn’t expect “any progress” this year.
That wasn’t what Trump wanted to hear. With markets shaky and pressure building, Trump appears eager to shift blame for the fallout from his tariff agenda — and he’s using Powell as the scapegoat.
Though Trump nominated Powell as Fed Chair in 2017, he’s repeatedly turned on him, especially when economic turbulence threatens political damage.
The Fed has made clear it’s not rushing to cut rates, especially while trade-related price shocks loom. Officials are wary of inflation flaring up again, no matter what Trump says.
Powell is unlikely to be removed before his term ends next year. But with Trump back in the White House and already throwing punches, some experts warn the pressure campaign against the Fed is only beginning.
