Trump threatens to try and fire Fed chief Powell

U.S. President Donald Trump said on Thursday that Federal Reserve Chair Jerome Powell’s termination “cannot come fast enough,” while renewing his call for the U.S. central bank to cut interest rates.

In a post on his Truth Social platform, Trump reiterated that Powell “should have lowered interest rates, like the [European Central Bank], long ago, but he should certainly lower them now.”

His comments come a day after Powell, speaking at the Economic Club of Chicago, emphasized the importance of the Fed’s independence, stating that it is “very widely understood and supported in Washington and in Congress where it really matters.”

Market watchers offered mixed reactions to Trump’s latest remarks. Jamie Cox, managing partner at Harris Financial Group in Richmond, Virginia, said Trump wants the Fed on board with his trade agenda but may not realize it already is.

“The U.S. dollar is our greatest advantage in world trade, and the Federal Reserve should do everything possible to foster monetary policy which protects it,” he said, noting that while administrations change, the effects of monetary policy are long-lasting.

Christopher Hodge, chief U.S. economist at Natixis in New York, said his earlier belief that Trump would not attempt to remove Powell has begun to shift.

“Trump seems more comfortable than expected with a slowing economy and equity volatility,” he noted. “While I still think Powell will be retained until his term ends, I’m less certain than I was previously.”

Ross Bramwell, market strategist at Homrich Berg in Atlanta, added that despite Trump’s repeated calls for Powell’s departure, he doubts the president would follow through.

“He would get some pushback from other Republicans in the Senate and the House,” Bramwell said. “Even public opinion would probably go against it, as most people have confidence in the market because of an independent Fed.”