Trump demands immediate resignation of Fed chair Jerome Powell

In the United States, President Donald Trump has intensified his longstanding criticism of Federal Reserve Chair Jerome Powell. Following a Cabinet meeting on July 7, 2025, Trump publicly insisted that Powell step down, asserting that his leadership has hindered economic progress by not implementing necessary interest rate cuts. This statement marked a peak in Trump's frustrations with the Fed, which he feels has cost the nation financially due to its monetary policies. Trump originally appointed Powell in 2017, but he now believes Powell is no longer aligned with his economic vision, particularly in light of ongoing inflation concerns. Trump's administration has derided Powell's policies and the decisions of the Federal Reserve, calling for a shift towards more accommodating monetary strategies to stimulate growth. Powell's term at the Fed is set to continue until May 2026, but the pressure for change is evident as Trump has begun exploring potential replacements, citing a preference for candidates who will embrace a more aggressive approach to rate cuts. Central to the ongoing conflict is the perception of Powell's independence; although Trump has frequently criticized him, there are legal limitations on the president's power to remove Fed officials. The relationship between Trump and Powell remains strained, with recurring tensions that highlight fundamental disagreements over economic policy and governance. Furthermore, Trump's call to fire Powell is complicated by the broader implications it could have on the markets, which could react negatively to any perceived erosion of the Fed's independence if Powell were removed.