“Powell’s termination cannot come fast enough!” Trump wrote in a social media post.

Today’s early-morning barrage of missives came after Powell had given a public speech at the Economic Club of Chicago on Wednesday. Trump rehashed his yearslong belief that Powell should lower interest rates more quickly. 

“‘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 wrote.

The Fed has paused a rate-cutting cycle it had started in September 2024. So far in 2025, the Fed has not made any changes to monetary policy, leaving the federal funds target rate between 4.25% and 4.5%. In his post, Trump compared Powell’s decision to that of the European Central Bank, which cut interest rates by 25 basis points on Thursday. 

As a Fed chair in a time of great economic uncertainty, investors and business owners pore over every word of Powell’s remarks in the hopes of divining some clues about the central bank’s future decisions. Yesterday was no different. Powell’s speech on Wednesday was strongly worded for a central banker. He was clear the Fed’s view of the future of the U.S. economy had worsened as a result of Trump’s tariff policy. 

“The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth,” Powell said.

In essence, Powell said the Fed was preparing for the possibility of stagflation, an economic scenario many economists view as worse than a recession. When stagflation hits, as it did in the 1970s, prices rise, but the economy doesn’t grow as a whole. It can take years to resolve and puts the central bank in the tough spot of having to choose between lowering inflation or unemployment. 

“We may find ourselves in the challenging scenario in which our dual mandate goals are in tension,” Powell said Wednesday, referring to the Fed’s goals of price stability and maximum employment. 

Trump did not react positively to Powell’s forecast of his tariff regime, claiming prices are coming down. “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” Trump wrote. 

The U.S. has taken in approximately $500 million in tariff revenue since April 5, three days after Trump announced his sweeping policy, according to the U.S. Customs and Border Protection. Trump’s estimate was $2 billion a day. 

As tariffs are intended to limit imports, it remains to be seen how long the generated revenues will persist. The Fed’s economy tracking saw “strong imports” in the first quarter, “reflecting attempts by businesses to get ahead of potential tariffs,” Powell said. 

Powell’s latest comments will have only added to Trump’s long-standing animus toward him. Over the years, Trump has commented, criticized, and generally opined on Powell’s performance as head of the central bank. Doing so is a major break with governmental practices that dictate the Fed should be insulated from political pressure. Since appointing Powell in November 2017, Trump has clashed with him over lowering interest rates, raising interest rates, and keeping them steady. 

Members of the Trump administration, including the President himself, believe the Fed should not be entirely independent from political interference. During the election campaign, top Trump aides were reportedly exploring a plan to curb the central bank’s independence, according to the Wall Street Journal. The Supreme Court is preparing to hear a case about whether the White House has the power to fire directors of independent federal agencies without cause. If the Trump administration were to win the case, it could weaken the protections that prevent the executive branch from removing a Fed chair. 

When asked about that possibility, Powell said Fed independence was a “matter of law” that could only be changed by Congress.

“I don’t think there’s any danger of that,” Powell said. “Fed independence has pretty broad support across both political parties and on both sides of the Hill. So I think that’s not a problem.”