US President Donald Trump launched a scathing attack on Federal Reserve Chair Jerome H. Powell on April 17, declaring that “Powell’s termination cannot come fast enough!”

The outburst followed comments made by Powell on April 17, in which he cautioned that tariffs could create a “challenging scenario” for the central bank by putting its dual mandate — maintaining stable inflation and supporting employment — at odds, Caliber.Az reports, citing US media.

Powell stated that the Federal Reserve could afford to remain patient with interest rate decisions until it had greater clarity on Trump’s economic policies. His remarks implied that the bar for cutting interest rates again remained high, with the Fed focused on ensuring any inflationary effects from tariffs did not become entrenched.

Trump has consistently pressured Powell to reduce borrowing costs, a stance he repeated on April 17 by referencing expectations that the European Central Bank (ECB) would lower interest rates.

The Federal Reserve operates independently from political control, and Powell reiterated on Wednesday that such autonomy is “a matter of the law.” Although past presidents have applied pressure on the central bank, concerns are growing in both Washington and on Wall Street that Trump may take more aggressive steps to erode its independence should he continue in office.

There is mounting speculation that Trump could attempt to remove Powell before his term as Fed Chair ends in May 2026. The former president has already moved to expand executive influence over independent regulators, signing an order to assume more control over the Fed’s role in bank supervision. He has also targeted other autonomous agencies, dismissing officials at the Federal Trade Commission, the Merit Systems Protection Board, and the National Labor Relations Board.

Earlier this month, Chief Justice John G. Roberts Jr. temporarily authorised the Trump administration to remove leaders of two independent agencies, issuing an “administrative stay” to allow the Supreme Court time to consider the matter.

Powell said on Wednesday that he did not expect the decision to directly affect the Federal Reserve but added that the central bank was “monitoring carefully” the situation.

During his first term, Trump repeatedly urged Powell and the Fed to lower interest rates, at one point labelling the Fed Chair an “enemy” and referring to central bank officials as “boneheads.” Although Trump appointed Powell to the role, he quickly became dissatisfied as the Fed refrained from further rate cuts.

Following Trump’s re-election in November, Powell was asked by a reporter whether he would step down if requested by the president. He gave a firm reply: “No.”

Pressed on whether the president had the authority to dismiss him, Powell responded unequivocally: “Not permitted under the law.”

Meanwhile, policymakers at the European Central Bank are widely expected to approve a seventh consecutive rate cut on Thursday, as optimism over an economic recovery in the eurozone fades amid growing anxiety over the fallout from Trump’s trade agenda.

While inflationary pressures remain a concern in Europe, ECB officials have expressed greater confidence in inflation returning to their 2 per cent target and have placed more emphasis on signs of economic weakness.

By Aghakazim Guliyev

Source: caliber.az