President Donald Trump, never one to miss a well-timed jab, has once again set his sights on Federal Reserve Chair Jerome Powell, suggesting his departure “can’t come fast enough” and branding him with the not-so-affectionate moniker “Too Late Jerome.” One might have hoped that appointing Powell in the day would have earned some clemency.
In a typically measured post on his Truth Social platform early Thursday morning, Trump fumed that the Fed should have already slashed interest rates this year and, failing that, should certainly get on with it now. His pointed phrasing – “Powell’s firing can’t come fast enough!” – raised more than a few eyebrows in Washington, rekindling concerns about the central bank’s cherished independence.
It remains unclear whether Trump’s call was a premature nod to Powell’s term ending in May 2026 or a veiled suggestion he should be removed altogether. The White House has, perhaps wisely, declined to comment.
Trump’s outburst, arriving on the eve of yet another expected ECB rate cut – their seventh, no less – may well reflect a certain transatlantic envy. While the Europeans seem to be merrily loosening policy to fight off growth concerns, in Trump’s view, Powell is dithering.
“Oil and food prices are falling. We’re getting rich off tariffs,” Trump claimed, in a statement unlikely to be found in most macroeconomic textbooks.
In a speech at the Economic Club of Chicago the day before, Powell had, predictably, taken a more measured approach, reiterating the Fed’s commitment to anchoring long-term inflation expectations. He warned that one-off price increases—say, from tariffs—mustn’t be allowed to spiral into persistent inflation.
“Our job is to ensure that a temporary shock doesn’t morph into a long-term inflation problem,” Powell explained – notably without using any playground nicknames.
But Trump’s latest intervention may yet reignite a far more serious debate in Washington: Can the Fed truly maintain its independence when political pressure is turned up to eleven? After all, it’s not the first time a president has rattled the chair’s seat – but it’s rarely done with quite so much branding flair.
As history reminds us – from Nixon’s grip on Burns to Volcker’s infamous jawboning, undermining the Fed rarely ends well. Whether Trump’s renewed assault is mere theatre or a prelude to policy chaos remains to be seen. However, if Powell’s dismissal were to move from meme to mandate, markets may need more than interest rates to steady their nerves.