Jerome Powell To be Fired? Donald Trump Warns ‘Fed Rate Cut NOW’

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Donald Trump has reignited his battle with Federal Reserve Chair Jerome Powell, calling him a “numbskull” and criticizing the Fed for delaying interest rate cuts. Though he says Powell’s job is safe for now, Trump hinted that he may “force something” if rates don’t drop soon. The pressure comes as the 2024 campaign heats up and Trump pushes for a more aggressive economic stance.

“Too High, Too Slow — Cut It Now!”

Speaking at a White House event, Trump claimed that cutting interest rates by just one percentage point could save the US $300 billion annually, while a two-point cut could double those savings. He blames Powell for being too slow to act, saying the Fed is making it harder to manage the country’s rising debt and borrowing costs.

Officials Call FED’s Inaction ‘Monetary Malpractice’

This isn’t the first time Trump’s administration has gone after Powell in recent days. Commerce Secretary Howard Lutnick and Vice President JD Vance have also attacked the Fed’s stance, calling it “monetary malpractice.” They argue that Powell’s reluctance to cut rates is hurting the economy, especially when inflation is easing and energy prices are dropping.

Trump has pointed to Europe, where ten rate cuts have already taken place, as an example of how central banks should respond when inflation cools. He believes the US is falling behind and losing economic momentum.

Can Trump Fire Powell? It’s Complicated

Even though Trump has the constitutional power to remove Powell, doing so could rattle markets. Legal experts say the move would damage the Fed’s credibility and likely cause long-term interest rates to spike. Trump appears to be aware of this, which is why he hasn’t acted yet.

Harvard legal scholars also note that the laws protecting Powell’s position have been slowly weakening in recent years. But despite the legal gray area, the real threat might come from how markets would react. Removing Powell could undermine investor confidence and hurt Trump’s broader economic goals.

With energy prices falling and inflation data remaining stable, Trump’s calls for rate cuts may intensify. But whether the Fed listens or whether Trump acts on his threats remains to be seen.