Chicago, Illinois – Federal Reserve chairman Jerome Powell remains resolute in his commitment to serve out the remainder of his term, ending in the spring of 2026. President Trump has once again criticized Powell for his stance on interest rates, despite the challenges posed by the ongoing trade war initiated by the administration.
Trump took to social media to express his frustration with Powell, accusing him of being consistently late and wrong in his decisions. The President’s dissatisfaction stems from the fact that the European Central Bank is considering further interest rate cuts while the Federal Reserve remains cautious, citing the potential inflationary effects of the tariffs imposed by the U.S.
Powell recently addressed the Economic Club of Chicago, highlighting the likelihood of tariffs leading to temporary inflation and slower economic growth. He emphasized the need for clarity before considering any adjustments to interest rates, given the current economic landscape shaped by trade tensions and global market uncertainties.
Despite Trump’s claims of the U.S. benefiting from tariffs, recent data shows that while oil prices have declined due to economic concerns, grocery prices have actually risen. Powell’s cautious approach to monetary policy has drawn criticism from the President, who has openly questioned the Fed’s decision-making process regarding interest rates.
The ongoing friction between Trump and Powell is part of a broader conflict over the Fed’s independence and its role in combating inflation. Even though Powell has faced pressure from the administration, he remains steadfast in his commitment to fulfilling his term, asserting that only “cause” could warrant his removal, as outlined in current legal precedent.
While tensions between the President and the Fed chair persist, Powell continues to defend the central bank’s autonomy in setting interest rates, emphasizing the importance of maintaining independence from political influence. Despite the criticisms leveled against the Fed, Powell remains focused on steering monetary policy in a manner that aligns with the broader economic objectives of the country.