Trump threatens swift removal of Fed chair Powell amid row

• During a meeting with Italian Prime Minister Giorgia Meloni, Donald Trump suggested that he might quickly remove Jerome Powell from his position as Fed Chair.
• The U.S. President criticizes Powell for not lowering interest rates, which, in his opinion, puts the United States at a disadvantage compared to Europe.
• Legal controversies regarding the possibility of removing the Fed Chair may soon be resolved by the Supreme Court.

During a meeting with Italian Prime Minister Giorgia Meloni, Donald Trump once again expressed his dissatisfaction with the actions of Jerome Powell, the Chair of the Federal Reserve. The U.S. President stated that he has the right to remove him if he deems it necessary.

"If I want him out he’ll be out of there, real fast, believe me. He’ll leave if I ask him to. He’ll be out of there," Trump said.

He once again criticized Powell, claiming that he is not doing his job well, is not satisfied with him, and stated that "he's always too late" in lowering interest rates. He argued that the Fed Chair puts the U.S. in a worse position than Europe because the European Central Bank consistently lowers its rates, while Powell has held off since December. He also stated that Powell "owes it to the American people" to do so.

Trump's criticism was a response to Wednesday's speech by the Fed Chair in Chicago, where Powell stated that the tariffs imposed by Trump could contribute to increased inflation—possibly for a longer term—and lower economic growth. He also suggested that due to uncertainty regarding trade policy, the Federal Reserve would hold back on further rate cuts.

Despite Trump's claims that he can freely dismiss the central bank's chair, this issue is a subject of legal controversy. The Federal Reserve Act emphasizes the independence of this institution and states that its chair can only be removed for cause.

Most lawyers believe that such a cause does not include policy disputes. The Supreme Court may soon address this matter, alongside another case involving other independent government agencies.

According to the portal Politico, Treasury Secretary Scott Bessent warned Trump against firing Powell—a Republican whom Trump originally appointed—arguing that removing him would further destabilize markets, which are already experiencing uncertainty due to the tariffs announced by Donald Trump.