“Powell’s dismissal can’t wait,” says Donald Trump

The president of the United States, Donald Trump, launched this Thursday, April 17, a forceful warning to the Federal Reserve (Fed) through a message on its social truth platform, demanding an immediate reduction in interest rates to stimulate the economy.

Trump argued that inflation has decreased since he assumed the position in January 2025, and that a rate of fees would be key to maintaining economic growth, especially in the face of tariffs imposed on countries such as China.

In his message, the president did not spare in criticism of the Fed, accusing her of always being late for economic decisions, and threatened to fire her president, Jerome Powell, if no quick measures are taken.

Another of the arguments cited by the Head of State is that the European Central Bank (ECB) has already declined interest rates and added:

Jerome “too late” Powell yesterday issued a report that was another, and typical, complete “disaster”! Petroleum prices have dropped, the groceries (even eggs!) Have lowered, and the US are enriched with tariffs. “Too late” should have lowered interest rates, such as the ECB, a long time ago, but it should certainly lower them now.

Donald Trump

According to a cryptootic analysis, the Fed, under the direction of Powell, has maintained a cautious posture, arguing that it is still early to relax monetary policy, especially after the recent tariff increases that could press upward prices.

Tariff war complicates the panorama

The current economic context is complicated with the commercial war between the US and China, which intensified in April 2025 after the imposition of tariffs greater than 100% of Chinese products, to which China responded with an 84% tariff to US goods.

These tariffs have generated a negative reaction in the markets, with Wall Street registering falls greater than 2% in the main indices, reflecting uncertainty to the economic impact of this commercial escalation. In a nutshell, there are fears that the conditions for a potential economic recession continue to be given.

Despite Trump’s claims about controlled inflation, the International Monetary Fund (IMF) warned that persistent inflation could increase prices and salaries expectations, complicating Fed’s efforts to achieve its goal of 2% in the medium term.

Trump’s pressure on Fed also occurs at a time when the US economy faces global challenges, such as war in Ukraine and the subsequent effects of the pandemic, which continue to affect supply chains and food prices, according to the United Nations Food and Agriculture Organization (FAO).

Analysts warn that a Powell dismissal by Trump (in case of completion) could trigger a crisis of confidence in the markets, given the precedent that would sit on the independence of the Central Bank, a fundamental pillar of economic stability in the US.

Powell himself said in the past that Trump cannot fire him because he is an independent agency. However, the Federal Reserve Law is not explicit about whether a US president can remove the president of the Fed “for cause.” For example, during his first term, Trump repeatedly criticized Jerome Powell, whom he himself appointed in 2018, but did not take formal measures to remove it.