President Trump erupted at the Federal Reserve chair on Thursday after the central bank boss warned that Trump’s tariffs will hurt the American economy.
Jerome Powell, speaking at the Economic Club of Chicago on Wednesday, said “the level of the tariff increases announced so far is significantly larger than anticipated,” which will cause “higher inflation and slower growth.” U.S. stocks tumbled as Powell spoke.
“Powell’s termination cannot come fast enough!” Trump raged in response, writing on Truth Social.
Powell, appointed by Trump in 2018 and reappointed by Joe Biden in 2022, suggested that while there is no immediate need to cut interest rates, trade disruptions caused by Trump’s economic policy will likely complicate the central bank’s path forward.
He also cautioned that large tariff increases, by driving up consumer prices and weakening economic activity, could force the Federal Reserve to choose between its goal of lower inflation and maintaining a strong labor market.
The Dow tumbled 700 points, or 1.73 percent, as Powell spoke. The S&P 500 fell 2.24 percent, and the tech-heavy Nasdaq plunged 3.07 percent.
This, of course, rattled Trump and his acolytes. Leading the charge against Powell, the president added in his Truth Social post Thursday morning that the chairman needs to cut interest rates.
Trump pointed out that the European Central Bank (ECB) is set to slash rates again.
“The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’” Trump fumed.
Trump then tried to paint a positive picture of the U.S. economy, and his tariffs, adding: “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS. Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now.”
Jerome Powell’s irresponsible speculation about inflation and growth, which sent the market tumbling, requires a full-throated, clear refutation by the Trump Team. Get Scott Bessent out there.
— Laura Ingraham (@IngrahamAngle) April 16, 2025
On Fox News, former House Speaker Kevin McCarthy suggested to Laura Ingraham that Powell’s comments could have serious consequences for the markets, not Trump’s actions.
“The Fed Chair should be working for America, not scaring America. What he said is hurting the economy,” McCarthy said on The Ingraham Angle Wednesday. ”The market reacts to what he’s said. President Trump is getting people to invest billions of dollars in America because of his policies.”
He said that Powell’s analysis of the tariffs’ impact “is really out of the playbook of the Democrats.”
Ingraham herself followed up with a strongly worded post on X, writing: “Jerome Powell’s irresponsible speculation about inflation and growth, which sent the market tumbling, requires a full-throated, clear refutation by the Trump Team. Get Scott Bessent out there.”
Other MAGA figures were similarly outraged. Bill Mitchell, the CEO of conservative podcasting platform YourVoice, called for Powell’s head after his “scary talk.”
“Jerome Powell just murdered the markets with scary talk on interest rates and inflation due to tariffs,” he wrote on X. “Can Trump fire him? Powell’s 4-year term as Chairman ends in 2026.”
A stock trader posting under the name ‘Pro America Politics’ suggested that Powell “purposely tanked the stock market today.”
“This piece of s–t needs to go,” he added in an X post.
Trump has floated removing the Fed Chair from his post on several occasions. A president has no legal authority to fire someone from the position, but this has not been tested in court.
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