Trump Calls for Federal Reserve to Change Leadership

• Trump is calling on the Fed to lower rates to stimulate the economy.
• Discussions about the potential dismissal of Powell are occurring due to political differences.
• The economy shows signs of weakening, with only 73,000 jobs added.

Washington — President Donald Trump on Friday called on the board of directors of the Federal Reserve to take control of the central bank, criticizing Fed Chair Jerome Powell for refusing to lower short-term interest rates.

On his Truth Social platform, Trump referred to Powell as "a superturd." The Fed chair has faced several months of harsh criticism from the president.

The Federal Reserve is responsible for stabilizing prices and maximizing employment. This year, Powell has maintained the key interest rate at a stable level, explaining that Fed officials need to assess the impact of rising tariffs on inflation.

If Powell does not lower rates "substantially," Trump stated that "THE FEDERAL RESERVE SHOULD BE TAKEN CONTROL OF AND FIXED, SO THAT EVERYTHING WILL BE RIGHT, SO THAT IT CAN BE FIXED!".

Trump believes that lowering rates would lead to greater growth and reduced costs for federal government borrowing and homebuyers. The president asserts that inflation is practically nonexistent, although the Fed's target is showing an annual rate of 2.6%, which exceeds the target indicator of 2%.

Trump called for a reduction of the Fed's key rate by 3 percentage points, lowering it to 4.33%. The high risk lies in the fact that such a drastic reduction could lead to an influx of money in the economy, which may provoke a surge in inflation.

In April, the Supreme Court ruled that Trump cannot dismiss Powell due to differences in politics. This prompted the White House to investigate whether it is possible to dismiss the Fed chair for reasons related to the framework of projects with a $2.5 billion renovation.

Powell's term in office will end in June 2026, after which Trump will be able to nominate his candidate for this position.

Tags: USA/Politics/Economy