Trump Calls for Powell's Quick Exit Amid Fed Rate Disagreements

President Donald Trump criticized Federal Reserve Chair Jerome Powell for not lowering interest rates, contrasting with European policies. Trump's comments follow Powell's assertion of the Fed's independence. The situation is complicated by Trump's tariff policies, which pose potential risks to inflation and employment.

In a bold statement on Thursday, U.S. President Donald Trump expressed his eagerness for Federal Reserve Chair Jerome Powell's departure, urging the U.S. central bank to reduce interest rates. Trump's remarks, aired on his social media platform Truth Social, reiterated his longstanding position that Powell should have followed the European Central Bank's lead in lowering rates.

The Fed's current benchmark interest rate, maintained between 4.25%-4.50% since December after a series of cuts, remains a point of contention. Trump's comments came after Powell reassured an audience at the Economic Club of Chicago of the Fed's commitment to independent rate-setting, a notion met with applause from business executives who value non-partisan governance.

This friction is compounded by Trump's contentious trade tariffs, which Powell recently cautioned could divert the economy from the Fed's inflation and employment objectives. As the Fed navigates these uncertainties, officials describe the situation as an 'economic shock' with no clear historical precedent, creating a unique predicament for U.S. monetary policy.

(With inputs from agencies.)