Former President Donald Trump has reportedly threatened to remove Federal Reserve Chair Jerome Powell from his position if he does not step down voluntarily, according to sources familiar with the matter. The threat comes amid escalating tensions over the Fed’s handling of inflation and interest rates, which Trump has repeatedly criticized as detrimental to economic growth.
Trump, who appointed Powell to the role in 2018, has frequently voiced dissatisfaction with the Fed’s policies, particularly its response to rising inflation and its cautious approach to lowering interest rates. Analysts note that Trump’s public criticism of Powell has intensified in recent months, reflecting broader concerns about economic instability ahead of the upcoming election season.
‘Powell’s decisions have been a disaster for the economy,’ Trump was quoted as saying by sources close to the matter. ‘If he doesn’t resign, I’ll have no choice but to fire him.’
Experts suggest that such a move would be unprecedented and could lead to significant market volatility. ‘The Federal Reserve is designed to operate independently of political pressure,’ said one financial analyst. ‘Any attempt to remove its chair for policy decisions would undermine its credibility and stability.’
This latest development raises questions about the future of U.S. monetary policy and its potential impact on the economy. As the presidential election approaches, the Fed’s actions are likely to remain under intense scrutiny.