Trump Demands Fed Chair’s Head Amid Rate Cut Feud: “He’s Always Too Late!
President Donald Trump is back in the spotlight, this time targeting Federal Reserve Chair Jerome Powell in a fiery rant over interest rates. In a dawn Truth Social post Thursday, Trump blasted Powell as “always too late and wrong,” demanding his ouster and claiming the Fed boss would “quit in a heartbeat” if asked. But here’s the twist: Powell’s already said he won’t resign—and legally, Trump can’t fire him.
Tariffs vs. Rates: A Global Economic Rollercoaster
Trump’s trade wars have thrown markets into chaos, with his whiplash tariffs on imports sparking global financial panic. While the European Central Bank (ECB) just slashed rates again to steady its economy, Trump’s furious the Fed hasn’t followed suit. But there’s a catch: the ECB’s boss, Christine Lagarde, openly blamed Trump’s tariffs for “clouded” economic skies, calling them a “negative shock” to demand.
Powell threw gasoline on the fire Wednesday, warning Trump’s tariffs could boost inflation—making rate cuts even less likely. “Prices might spike, and not just temporarily,” he cautioned, hinting the Fed could face a nightmare choice: fight inflation or tackle rising unemployment.
Flip-Flops and Market Meltdowns
Trump’s tariff tantrum hit a breaking point earlier this month. After markets tanked and even ultra-safe U.S. bonds nosedived, he suddenly paused most new tariffs for 90 days (except on China). Economists now peg U.S. recession odds at 45%, and the World Trade Organization warns global trade could shrink this year.
Yet Trump insists America’s “getting rich on tariffs,” bragging about falling oil and egg prices. “Powell’s termination can’t come fast enough!” he raged, ignoring the Fed’s independence.
Why Can’t Trump Just Fire Him?
Simple: He can’t. Fed chairs serve fixed four-year terms, and Powell’s safe until spring 2025. Even Trump’s own Treasury Secretary reportedly warned that trying to axe Powell would explode markets. Meanwhile, New York Fed chief John Williams backed Powell’s wait-and-see approach, saying there’s “no need to change rates soon.”
Stagflation Nightmare Looms
Experts fear Trump’s trade chaos could spark stagflation—the toxic combo of high inflation, job losses, and stagnant growth. “It’s like a financial horror movie,” one analyst warned. With the IMF urging central banks to “stay agile,” the Fed’s in a no-win bind: cut rates to spur growth, or hike them to cool inflation.
Bottom Line: Trump’s tariff drama isn’t just rattling markets—it’s pitting him against the Fed in a high-stakes blame game. And with Powell digging in, this showdown’s far from over. Buckle up.
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