Trump Ramps Up Pressure on Fed Chair Powell Amid Rate Cut Dispute

Tensions are escalating between former U.S. President Donald Trump and Federal Reserve Chair Jerome Powell over monetary policy decisions. Trump has renewed calls for Powell's resignation, accusing the Fed leader of hindering economic recovery by maintaining higher interest rates.

The conflict intensified after Powell suggested Trump's trade tariffs were contributing to inflationary pressures, complicating the Fed's ability to justify rate cuts. Trump retaliated through social media, amplifying demands for Powell's immediate departure following allegations of political bias from Federal Housing Finance Agency head Bill Pulte.

Legal experts highlight significant obstacles to removing Powell before his term concludes in May 2026. Federal Reserve independence is constitutionally protected, requiring 'for cause' justification for any premature dismissal.

Market observers note the policy standoff's broader implications. Bitcoin surged 2.62% to $108,000 amid the political uncertainty, while analysts debate whether approaching tariff expirations might create room for monetary policy adjustments. Some cryptocurrency experts have joined the criticism, questioning Powell's cautious approach when inflation nears the Fed's 2% target.