Former U.S. President Donald Trump has threatened to fire Federal Reserve Chair Jerome Powell if he does not resign next month, escalating a long-running feud over monetary policy. The remarks, reported by multiple outlets, come as inflation remains a key issue in the 2024 election cycle.
Trump appointed Powell as Fed chair in 2018 but later criticized his interest rate policies. Analysts note this is the first explicit threat of termination, though legal experts question whether a president can unilaterally remove a sitting Fed chair. "The Federal Reserve Act is deliberately vague on removal standards," said a former Treasury official speaking anonymously.
Market reaction was muted, with S&P 500 futures down 0.3% in early trading. Some economists warn that political interference could undermine the Fed’s independence. "This sets a dangerous precedent regardless of party affiliation," noted a Brookings Institution researcher.
The development comes weeks before the Fed’s June policy meeting, where officials may reconsider rate cut timelines amid sticky inflation. Trump’s campaign did not respond to requests for comment.