Trump reiterates demand for interest rate reductions, claims rates would be lower if Fed Chair Powell “grasped his role.”

U.S. President Donald Trump and U.S. Federal Reserve Chair Jerome Powell. Win McNamee | Annabelle Gordon | Reuters

President Donald Trump on Friday launched his latest criticism of Federal Reserve Chair Jerome Powell as tensions between the White House and the economic policy leader escalate. During a Friday afternoon session with reporters, Trump cited instances of declining prices. “If we had a Fed Chairman who understood what he was doing, interest rates would be coming down, too,” Trump stated. “He should bring them down.”

Trump has consistently argued that the Fed, which manages monetary policy in the U.S., should lower interest rates. His recent comments coincide with an increase in the White House’s criticisms of Powell in recent days. White House economic adviser Kevin Hassett mentioned on Friday that Trump and his team are evaluating whether they can remove the Fed Chair. Powell has previously indicated that he cannot be dismissed under current laws, aiming to serve until the end of his term in May 2026.

“The president and his team will continue to explore that matter,” Hassett remarked at the White House, following a reporter’s inquiry about whether Powell’s dismissal “is an option in a way that it wasn’t before,” according to Reuters.

Trump expressed on Truth Social on Thursday that “Powell’s termination cannot come fast enough,” referring to Powell by the nickname “Too Late,” a continuation of Trump’s practice of using satirical titles for political figures. The term “termination” raised speculations about whether Trump was implying Powell’s removal could occur sooner than anticipated. Hassett noted that the administration will investigate if there’s “new legal analysis” that could permit Powell’s termination.

Tensions appeared to rise further after Powell indicated on Wednesday that Trump’s contentious tariff plan might lead to increased inflation in the short term, complicating the central bank’s objectives of maintaining high employment rates and price stability. Powell remarked that Trump’s tariffs—many of which are currently paused—”are likely to move us further away from our goals.”

“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” Powell stated in prepared remarks before the Economic Club of Chicago. “If that were to occur, we would consider how far the economy is from each goal and the potentially different time horizons over which those respective gaps would be anticipated to close.”

Powell also mentioned that the Fed is “well positioned to wait for greater clarity before considering any adjustments to our policy stance.” The Federal Open Market Committee currently targets its borrowing rate within a range of 4.25% to 4.5%, where it has remained since December.

As Trump’s criticisms escalate, some Democrats have begun to defend Powell. Senator Elizabeth Warren, D-Mass., cautioned on Thursday that a presidential move to dismiss the Fed Chair could have severe repercussions for U.S. financial markets. “Understand this: If Chairman Powell can be fired by the president of the United States, it will crash markets in the United States,” Warren stated during her remarks.