Trump vs. Powell: Federal Reserve Clash Intensifies

U.S. President Donald Trump criticized Federal Reserve Chair Jerome Powell for not cutting interest rates, suggesting a turbulent relationship with potential global market implications. Trump hinted at the possibility of removing Powell, despite opposition and legal hurdles. This conflict revives concerns about Fed independence amid rising inflation and tariff challenges.

U.S. President Donald Trump has escalated his verbal attacks on Federal Reserve Chair Jerome Powell, accusing him of "playing politics" by not reducing interest rates. Trump claimed he could remove Powell swiftly and expressed eagerness for his departure, prompting fears of potential disruption in global markets.

In a subsequent press appearance, Trump emphasized the impact of Fed decisions on his administration, noting that consumer interest rates remain high amid inflation concerns due to his tariff policies. Despite Trump's assertions, Powell, who is financially self-sufficient, has no plans to step down before his term ends in May 2026.

The tension between Trump and Powell raises questions about the Fed's independence. Powell underscored its importance during an Economic Club of Chicago appearance, drawing support from business leaders. The ongoing dispute poses risks for financial market stability as the Fed navigates a challenging economic landscape.

(With inputs from agencies.)