Trump's Battle with Fed Chair: Unyielding Powell Under Fire

President Donald Trump has criticized Federal Reserve Chair Jerome Powell, urging the board to bypass Powell's authority over interest rate cuts. Trump argues for substantial rate reductions to boost growth, but Powell has resisted changes amid ongoing tariff impacts. Trump's calls highlight tensions with the Fed amid economic challenges.

President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell on Friday, urging the board to override Powell's decisions on interest rates. Trump argues for drastic cuts, asserting they are vital for economic growth. Powell, however, has maintained steady rates amid tariff-induced inflation concerns.

Trump took to his Truth Social platform, labeling Powell as 'stubborn' for not lowering rates, which Trump believes would benefit the economy by reducing debt service costs. The Fed, focusing on price stability and employment, currently holds its rate at an average of 4.33%, resisting immediate changes.

Despite Trump's pressure, Powell's term as Fed Chair lasts until May 2026. The Supreme Court recently indicated that policy disagreements alone are insufficient grounds for his removal, leaving Trump's plans to potentially replace him with Senate approval upon term completion.

(With inputs from agencies.)