Trump demands Fed Chair Powell resign, slamming high interest rates for stifling growth and crypto markets ahead of June FOMC meeting.
President Donald Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, renewing demands for his resignation over disagreements on interest rate policies. Trump, who initially nominated Powell in 2017, now labels him a “stubborn mule” whose economic decisions harm the nation’s interests.
Trump’s Frustration with Powell’s Interest Rate Stance
In a recent statement, Trump expressed his desire for Powell’s resignation, arguing that the Fed’s reluctance to cut interest rates swiftly is detrimental to the economy. He claimed, “I think we should be paying 1% right now, and we’re paying more because we have a guy who suffers from, I think, Trump Derangement Syndrome.”
Trump criticized Powell’s policies as “stupid,” asserting they inflate the cost of servicing U.S. debt.
Trump’s ongoing frustration stems from his belief that lower interest rates would spur economic growth, particularly as he advocates for increased government spending through a proposed tax-cut package. Lower rates would reduce borrowing costs for the government’s $37 trillion debt.
His remarks echo earlier attacks, including an April 2025 statement where he suggested Powell could be fired “real fast” if desired, despite legal constraints on removing the Fed chair.
Federal Reserve’s Cautious Approach
The Federal Reserve, under Powell, has maintained a cautious stance on interest rate cuts. Powell has emphasized the need for patience amid economic uncertainties, particularly due to Trump’s tariff policies, which he warned could cause “at least a temporary rise in inflation.”
Inflation peaked at 9.1% in 2022 and has fallen to 2.4% recently, close to the Fed’s 2% target. Despite three rate cuts in late 2024, the Fed has held rates steady at 4.25%–4.5% since early 2025, citing risks of premature cuts reigniting inflation.
Powell, whose term extends to May 2026, has firmly stated he would not resign if asked, noting that the Fed’s independence is protected by law and that chairs are removable only for cause.
Trump Eyes Powell’s Replacement
With Powell’s term nearing its end, Trump reportedly considers replacements more aligned with his preference for lower rates. While he has not named candidates, former Fed Governor Kevin Warsh has been mentioned in discussions. Trump’s push for a new chair reflects his broader economic agenda to stimulate growth through lower borrowing costs.
Trump’s criticism has gained traction among supporters like entrepreneur Grant Cardone, who tweeted on June 25, 2025, “Fed Chairman Jerome Powell should RESIGN today! There is no inflation, and he continues to punish the American middle class with high mortgage rates.” Cardone’s sentiment reflects broader frustration among some who believe Powell’s policies hinder affordability, particularly for housing.
Market and Legal Context
Trump’s tariff proposals, including a 10% universal import tax and a 145% levy on Chinese goods, have raised concerns about inflation and economic slowdown, complicating the Fed’s rate decisions. Market reactions have been volatile, with the Dow dropping 750 points and the U.S. dollar hitting a 2022 low after Trump’s tariff announcements in April 2025.
A Supreme Court case on presidential authority to fire agency heads could impact the Fed’s independence, though Powell believes the central bank may be exempt. For now, the ongoing tension between Trump and Powell underscores a critical debate over monetary policy and economic priorities.