Trump Threatens Jerome Powell Over Interest Rates: ‘Termination Cannot Come Fast Enough!’

President Donald Trump railed against Federal Reserve Chairman Jerome Powell on Thursday, saying his “termination cannot come fast enough!” over Powell’s continuous refusal to bow to pressure and cut interest rates.

Trump, taking his grievances to social media, dubbed the chairman “Too Late Jerome Powell” after Powell, a day earlier, stood by his stance that the Federal Reserve should hold off on cutting rates until it had a better understanding of Trump’s policies.

Powell, speaking before an audience in Chicago, added that Trump’s tariffs are “highly likely” to cause higher inflation and slower economic growth than previously expected.

Trump dismissed his assessment as “another, and typical, complete ‘mess!’”

“Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now,” he wrote on his Truth Social account, referring to the European Central Bank, which cut its main interest rate on Thursday in response to slowing growth and Trump’s tariffs.

Trump has repeatedly called on Powell to cut interest rates since taking office. During his first term in office, he also spoke of firing Powell due to his frustration with stock market losses and the risk of the economy falling into recession during the COVID-19 pandemic.

Powell, on Wednesday, said he won’t bow to political pressure and reminded that the Fed’s “independence is a matter of law” and that its members cannot be removed from their position “except for cause.”

“We’re never going to be influenced by any political pressure,” he said. “People can say whatever they want. That’s fine. That’s not a problem. But we will do what we do strictly without consideration of political or any other extraneous factors.”

Powell, like other economists, has made similar, ominous predictions about the decline of the U.S. economy following Trump’s sweeping tariff hikes, warning earlier this month that they could lead to a mix of inflation, higher unemployment, and declining growth in the U.S.

“While tariffs are highly likely to generate at least a temporary rise in inflation, it’s also possible that the effects could also be more persistent,” he said.

J.P. Morgan Chase CEO Jamie Dimon also warned last week that a recession is a likely outcome from Trump’s tariffs. J.P. Morgan’s economists have given a 60% probability of a recession.

Economists recently polled by Reuters expressed similar concerns, saying they expect a significant slowdown in the U.S. economy this year and next, with the median probability of a recession in the next 12 months approaching 50%.