Working overtime on the weekend to post memes—Trump really wants to "fire" the Fed chairman.
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Trump once again called on social media to "fire" Powell, which may further raise market concerns about the independence of the central bank.
On Saturday (September 27, local time), U.S. President Trump posted a cartoon image on his social platform Truth Social, showing him saying his iconic "You're fired!" to Federal Reserve Chairman Powell, who is holding a box of personal belongings.
The image shows him pointing at Powell, with the official seal of the Federal Reserve in the background. Visual analysis indicates that the image is AI-generated or a digital illustration. Analysts note that Trump's move once again escalates the public conflict between him and the Fed.
Despite the Fed's first rate cut this month, Trump still expressed strong dissatisfaction with Powell's cautious monetary policy. He has repeatedly criticized Powell for cutting rates too slowly and given him the nickname "Too Late Powell". Powell's term as Fed Chairman ends in May 2026.
Legal experts point out that dismissing the Fed Chairman is unprecedented in U.S. history, and recent Supreme Court rulings show that the President has no right to arbitrarily remove Fed officials. However, economists warn that prematurely removing Powell could lead to a rise in long-term interest rates, as the market may fear damage to the Fed's independence.
Trump Again Threatens to "Fire" Powell
Trump has previously called Powell "incompetent" and "too slow," continuously attacking the Fed chair's hesitance on rate cuts. Analysts point out that this latest move reflects Trump’s continued dissatisfaction with the Fed’s monetary policy.
Although the Fed made its first rate cut of the year this month and suggested further potential cuts in October and December, Trump still thinks the central bank is moving too slowly.
Notably, firing the Fed Chair faces major legal obstacles. No U.S. president has ever tried to remove a Fed Chair, although previous presidents have criticized central bank leaders.
Recent Supreme Court decisions show the president has no right to arbitrarily remove Fed officials. Powell has repeatedly stressed that firing him is "not allowed by law."
The Trump administration once criticized Powell regarding renovations at the Fed's Washington headquarters, raising suspicions that Trump might use this as a pretext to remove the central bank head. However, Trump's recent criticism of the Fed building has softened, though he continues to condemn Powell for keeping rates too high and hurting the economy.
Debate Over Fed Independence Continues to Escalate
In addition to publicly criticizing Powell, Trump has also exerted influence over Fed appointments.
Trump has already taken concrete actions to try to influence the Fed. In August, he sought to fire Fed Governor Lisa Cook on allegations of mortgage fraud, and the Supreme Court is about to rule on the matter.
The Justice Department said in filings before the Supreme Court on Friday that dismissing Cook for alleged misconduct would not harm financial markets. Cook's lawyers argued in earlier court documents that removing her could undermine the Fed’s independence.
Trump also used a vacancy to temporarily appoint White House Council of Economic Advisers Chair Stephen Miran to the Fed Board, possibly intending to influence future Fed decisions.
Facing political pressure, Powell reiterated the Fed’s independence at a Rhode Island Chamber of Commerce event Tuesday: "Whenever we make decisions, we never consider political factors. What we focus on is what is best for the people we serve, and what is the best policy."
Powell also said:
"We don't get into back-and-forth arguments with outsiders. We just do our job and keep our heads down. That's how we operate."
His remarks were interpreted by the market as a direct response to Trump’s pressure, emphasizing that the central bank will continue to act independently according to its legal mandate.
Financial markets have shown little reaction to Trump’s threats to fire Powell or attempts to remove Cook. However, many economists and investors believe that dismissing Powell before his term ends could push long-term interest rates higher, as the market fears the Fed may start acting according to Trump’s wishes.
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