Trump says termination of Fed chair 'cannot come fast enough'

ISTANBUL

US President Donald Trump on Thursday pushed for an early end to the tenure of Federal Reserve Chair Jerome Powell, faulting him with a reluctance to cut interest rates.

On social media, Trump called Powell "always too late" to cut rates and added: "Powell’s termination cannot come fast enough!"

It is not clear if Trump referred to end of Powell's regular term or if he wanted to fire him, which Powell has repeatedly said would be illegal. Fed chairs are nominated by the president and confirmed by the US Senate; Powell’s term is set to end in 2026 at the earliest.

Contrasting Powell with the European Central Bank, Trump wrote: "The ECB is expected to cut interest rates for the 7th time, and yet, 'Too Late' Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete 'mess!'”

"Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS," he said, referring to his recently imposed higher tariffs on US trading partners, as well as retail egg prices, a frequent theme of Trump’s 2024 presidential campaign.

He added: “Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.”

Driven largely by the bird flu outbreak, US retail egg prices rose in both February and March, according to US Bureau of Labor Statistics figures.

Trump's remarks came after Powell warned Wednesday that Trump’s tariffs are "highly likely" to cause at least a temporary rise in inflation.

"The inflationary effects (of the tariffs) could also be more persistent. Avoiding that outcome will depend on the size of the effects, on how long it takes for them to pass through fully to prices, and, ultimately, on keeping longer-term inflation expectations well anchored," Powell said.

Trump previously urged Powell several times to cut interest rates and criticized his “lateness” in cutting rates.

In 2024, ahead of the November election, then-candidate Trump said Powell should not lower rates, saying that doing so would “help the Democrats,” his political opponents.