Overview

• President Trump publicly called for the removal of Federal Reserve Chair Jerome Powell, claiming his 'termination cannot come fast enough.'
• Trump criticized Powell for not cutting interest rates, contrasting the Fed's stance with the European Central Bank's seventh rate reduction this year.
• Powell, speaking at the Economic Club of Chicago, warned that Trump's tariffs are likely to drive inflation and slow economic growth, complicating monetary policy decisions.
• The Federal Reserve has maintained its benchmark interest rate since late 2024, citing the need for more clarity on the economic impact of tariffs before making adjustments.
• Powell emphasized the Fed's legal independence, stating that he cannot be removed by the president without cause, a position broadly supported by Congress.