Overview

• President Trump has publicly criticized Federal Reserve Chair Jerome Powell, calling for his 'termination' over Powell's refusal to cut interest rates.
• Trump claims he has the authority to remove Powell, though legal experts and Powell himself assert that the president cannot fire a Fed chair without cause.
• The Federal Reserve has kept its benchmark interest rate at 4.25–4.5% since December, citing inflation risks tied to Trump's tariff policies.
• Powell warns that the tariffs could lead to higher inflation and slower economic growth, complicating the Fed's dual mandate of price stability and full employment.
• The conflict has raised concerns about the independence of the Federal Reserve, a cornerstone of U.S. monetary policy since 1935.