Overview

• President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, calling for his 'termination' over the Fed's refusal to cut interest rates.
• Trump compared Powell unfavorably to the European Central Bank, which recently enacted rate cuts, and accused the Fed of being 'too late and wrong.'
• Powell reaffirmed the Fed's legal independence, stating he cannot be removed without cause and emphasizing the importance of data-driven decisions.
• The Fed has held interest rates steady at 4.25–4.5%, citing the need for clarity on the inflationary effects of Trump's tariffs before making policy changes.
• Legal experts suggest the president lacks the authority to fire Powell over policy disagreements, though the matter has not been tested in court.