Overview

• White House economic adviser Kevin Hassett confirmed that President Trump and his team are examining legal options to remove Federal Reserve Chair Jerome Powell.
• Trump has intensified public criticism of Powell, accusing him of failing to cut interest rates in line with the European Central Bank’s easing measures.
• Powell reiterated that his removal would not be legally permissible under current statutes and pledged to serve his full term through May 2026.
• The clash stems from Powell’s warnings that Trump’s aggressive tariff policies are likely to fuel inflation and slow economic growth, contrasting with Trump’s push for rate cuts.
• Markets remain volatile ahead of the Federal Reserve’s May meeting, as investors weigh the implications of the ongoing conflict for U.S. monetary policy.