Trump Urges Fed Board to Overrule Powell on Interest Rates

President Trump has escalated his criticism of Federal Reserve Chair Jerome Powell following the Fed's decision to keep interest rates steady at 4.25 to 4.5 percent, urging the Fed's board of governors to take control of rate decisions from Powell. Trump labeled Powell as stubborn and called for substantial rate cuts, arguing that lower rates would benefit economic growth and reduce borrowing costs, despite warnings from economists about potential inflation risks. The recent Fed vote revealed rare dissent from two board members, Michelle Bowman and Christopher Waller, who are reportedly considered by Trump as possible successors to Powell when his term ends in May 2026. Trump’s demands challenge the legal autonomy of the Fed, as the Supreme Court has ruled that firing the Fed chair over policy disagreements is not permissible, though the White House is exploring other avenues for Powell's removal. The president’s public attacks and calls for board intervention underscore the growing tension between the White House and the Federal Reserve, raising concerns about the independence of U.S. monetary policy. This discord follows disappointing labor market data and ongoing debates about the impact of Trump’s tariffs on the economy.