President Donald Trump has escalated his ongoing feud with Federal Reserve Chair Jerome Powell, suggesting that Powell’s “termination cannot come fast enough” and implying that he could remove him from office. These remarks have raised concerns about the independence of the Federal Reserve and have contributed to volatility in financial markets.
Speaking at the White House on April 17, 2025, Trump expressed his dissatisfaction with Powell’s handling of interest rates, stating, “I’m not happy with him.” He further suggested that Powell would “be out of there real fast if I want him out,” despite legal protections that make it challenging to remove a sitting Fed Chair without cause.
The President’s comments have unsettled investors, leading to a sharp decline in the U.S. dollar, which hit a decade-low against the Swiss franc. The euro also surged past $1.15, and gold prices reached a record high of $3,370.17 per ounce as traders sought safe-haven assets.
Legal experts note that while the President appoints the Fed Chair, the position is designed to be independent, and removal requires cause. Powell, appointed by Trump in 2017 and reappointed by President Biden in 2021, has indicated he would not resign if asked.
The escalating tension between the White House and the Federal Reserve comes amid economic uncertainty fueled by fluctuating trade policies and concerns over inflation. Analysts warn that undermining the Fed’s independence could have long-term implications for the U.S. economy and its financial credibility.
As markets react to the President’s statements, the situation underscores the delicate balance between political leadership and independent economic policymaking.
