US President Donald Trump and US Federal Reserve Chairman Jerome Powell.
Wins McNamee | Annabelle Gordon | Reuters
President Donald Trump on Friday robbed his latest criticism with Federal Reserve Chairman Jerome Powell as his frustration with White House economic policy leaders hit a hot pitch.
During a question-and-answer session with reporters on Friday afternoon, Trump pointed to examples of prices falling.
“If there’s a Fed chairman who understands what he’s doing, interest rates will also fall,” Trump said. “He should beat them.”
Trump has long argued that the Fed, which has set monetary policy in the US, should cut interest rates. His latest comments come as the White House recently attacked Powell with Ratchet.
White House economic adviser Kevin Hassett said Friday he was assessing whether Trump and his team could remove the Fed’s chair. Powell previously stated that he could not be fired under the law and intends to serve as chairman in May 2026 through the end of his term.
“The president and his team will continue to study that important thing,” Hassett said at the White House after questioning that firing Powell was an option in a way that was not previously the case.”
Trump posted on Truth Social on Thursday that “Powell’s end cannot come quickly enough.” His post included the nickname “too late” for Powell, a continuation of Trump’s practice of giving political rivals satirical titles.
His use of the word “end” raised questions as to whether Trump refers to potential removal from his post prior to the schedule. Hassett said Friday that the administration will consider whether there is a “new legal analysis” that will allow Powell to be fired.
Powell appeared to be ignoring Trump after he said on Wednesday that the president’s controversial tariff plans could raise inflation in the short term, posing challenges for central banks in managing high employment and price stability targets. Powell said Trump’s taxation (now suspended) is likely to “more likely to drive us further away from our goals.”
“We may find ourselves in a challenging scenario where the goals of dual mandart are tense,” Powell said in a statement prepared in front of the Chicago economic club. “If that happens, we consider how far the economy is from each target, and the potentially different time horizons that each gap is expected to close.”
Powell also said the Fed is “well well positioned to wait for more clarity before considering adjusting its policy stance.”
The Federal Open Market Committee is currently targeted in the range of 4.25% to 4.5%, with a borrowing rate that has been sitting since December. Fed Reserve Fund futures are priced at over 90% of the time that central banks will be stable again at policy meetings next month, according to CME’s FEDWATCH tool.
Some Democrats are defending themselves as Trump’s team has expanded criticism. Sen. Elizabeth Warren (D-Mass.) warned on Thursday that the president fires the Fed chief is disastrous for the US financial markets.
“I understand this: If Chairman Powell is fired by the US President, the US market will crash,” Warren told CNBC.
