Overview

• President Trump publicly criticized Federal Reserve Chair Jerome Powell, stating his 'termination cannot come fast enough' and calling for immediate rate cuts.
• Trump compared Powell's handling of interest rates unfavorably to the European Central Bank, which has implemented its seventh rate cut to stimulate growth.
• Powell warned that the administration's tariffs are likely to drive inflation and slower economic growth, complicating the Fed's dual mandate of price stability and full employment.
• Reaffirming the Federal Reserve's independence, Powell stated that Fed officials are legally protected from removal without cause and emphasized data-driven decision-making.
• The clash highlights growing tensions between the White House and the Fed, with legal and economic implications for central bank independence and monetary policy.