{"id":49296,"date":"2025-04-17T09:19:22","date_gmt":"2025-04-17T14:19:22","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/?p=49296"},"modified":"2025-04-17T09:19:22","modified_gmt":"2025-04-17T14:19:22","slug":"trumps-tantrum-bullying-jerome-powell-to-slash-rates-while-screaming-for-his-ouster","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trumps-tantrum-bullying-jerome-powell-to-slash-rates-while-screaming-for-his-ouster\/49296\/","title":{"rendered":"Trump\u2019s Tantrum: Bullying Jerome Powell to Slash Rates While Screaming for His Ouster"},"content":{"rendered":"\r\n\r\n\r\n\r\n\r\n\r\n\"trumpPresident Donald Trump has turned up the heat on Federal Reserve Chair Jerome Powell, unleashing a torrent of pressure to cut interest rates while publicly demanding his head on a platter. In a fiery Truth Social post on April 17, 2025, Trump blasted Powell as \u201cTOO LATE AND WRONG,\u201d insisting he \u201cshould have lowered Interest Rates, like the ECB, long ago\u201d and crowing that \u201cPowell\u2019s termination cannot come fast enough!\u201d This latest outburst, following Powell\u2019s measured speech at the Economic Club of Chicago, underscores a dangerous clash between a volatile White House and an independent Fed navigating the economic fallout of Trump\u2019s tariff spree. Buckle up as we dive into this high-stakes showdown and its implications for markets, consumers, and the Fed\u2019s sacred autonomy.\r\n\r\n\r\n

Trump\u2019s Tirade: The Rate-Cut Rant<\/h2>\r\n\r\n\r\n\r\n\r\nTrump\u2019s April 17 Truth Social screed was a masterclass in unhinged Fed-bashing. He pointed to the European Central Bank (ECB), which cut rates for the seventh time to juice growth amid tariff-induced trade tensions, as a model Powell should\u2019ve copied ages ago. \u201cOil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,\u201d Trump claimed, conveniently ignoring that food prices are still climbing and his tariffs are stoking inflation fears. His demand? Slash rates now, or else. The \u201celse\u201d being Powell\u2019s \u201ctermination,\u201d a threat Trump lobbed with zero subtlety, hinting at firing the Fed Chair before his term ends in May 2026.\r\n\r\n\r\n\r\nThis isn\u2019t Trump\u2019s first rodeo. Since his April 2 \u201cLiberation Day\u201d tariff announcement, he\u2019s been hounding Powell, calling rate cuts \u201cPERFECT\u201d on April 4 and accusing him of \u201cPLAYING POLITICS\u201d by not complying. The irony is thicker than a bank vault door\u2014Trump, the guy trying to strong-arm an independent agency, accusing Powell of political games. Markets, already jittery from tariffs, shuddered further, with the Dow dropping 700 points during Powell\u2019s April 16 speech.\r\n\r\n\r\n

Powell\u2019s Pushback: The Fed Stands Firm<\/h2>\r\n\r\n\r\n\r\n\r\nPowell, cool as a cucumber, isn\u2019t budging. In his Chicago speech, he warned that Trump\u2019s tariffs\u2014think 245% on Chinese imports and 10% across the board\u2014are \u201chighly likely\u201d to spike inflation and slow growth, creating a \u201cchallenging scenario\u201d for the Fed\u2019s dual mandate of stable prices and full employment. He stressed the Fed\u2019s independence as a \u201cmatter of law,\u201d earning applause from business execs for his pledge to resist political pressure. When asked about Trump\u2019s firing threats, Powell has been blunt: \u201cNot permitted under the law.\u201d Legal precedent, like the 1935 Humphrey\u2019s Executor v. United States<\/em>, protects Fed chairs from being sacked over policy spats, though a pending Supreme Court case could muddy the waters.\r\n\r\n\r\n\r\nPowell\u2019s game plan? Patience. With rates steady at 4.25% to 4.5%, the Fed is waiting for \u201cgreater clarity\u201d on tariff impacts. Inflation\u2019s stuck above the 2% target, and Trump\u2019s trade war could make it worse, potentially forcing rate hikes<\/em>, not cuts. Powell\u2019s not here to bail out Trump\u2019s self-inflicted economic wounds, no matter how loudly the president screams.\r\n\r\n\r\n

The Tariff Trap: Trump\u2019s Economic Own-Goal<\/h2>\r\n\r\n\r\n\r\n\r\nTrump\u2019s tariffs, hailed as a money-making machine, are the real culprit here. His policies have roiled markets, sent Treasury yields soaring, and raised recession fears. Powell noted that short-term inflation expectations are climbing, and consumers are bracing for a 6.7% price surge in the next year. Businesses are hoarding imports to dodge tariffs, further gumming up supply chains. Yet Trump insists the U.S. is \u201cgetting RICH,\u201d a claim that doesn\u2019t square with Wall Street\u2019s gloom or economists\u2019 stagflation warnings. His 90-day tariff \u201cpause\u201d was a half-hearted retreat, but threats of new levies on semiconductors and pharmaceuticals keep markets on edge.\r\n\r\n\r\n

Why It Matters: The Fed\u2019s Independence at Stake<\/h2>\r\n\r\n\r\n\r\n\r\nTrump\u2019s pressure campaign isn\u2019t just about rates\u2014it\u2019s an assault on the Fed\u2019s independence, a cornerstone of global financial stability. If he succeeds in bullying Powell or, worse, ousting him, it could spook markets and unmoor inflation expectations. Francesco Bianchi, an economics professor at Johns Hopkins, warned that perceived Fed capitulation could spike long-term rates as markets brace for unchecked inflation. The Fed\u2019s credibility, vital for global markets, hangs in the balance.\r\n\r\n\r\n\r\nPowell\u2019s term runs until May 2026, and he\u2019s vowed to serve it out. Treasury Secretary Scott Bessent is already eyeing replacements, but firing Powell would spark legal battles and economic turmoil. Trump\u2019s own lawyers, during his first term, concluded he can\u2019t fire the Fed chair without cause, and Powell\u2019s defiance suggests he\u2019s ready for the fight.\r\n\r\n\r\n\r\n

Final Thoughts: A President vs. a Principle<\/h2>\r\n\r\n\r\n\r\n\r\nTrump\u2019s war on Powell is a reckless gamble. By demanding rate cuts to offset his tariff chaos, he\u2019s trying to force the Fed to clean up his mess. Powell, standing firm, is defending not just his job but the principle that the Fed serves the economy, not the White House. As markets wobble and prices creep up, Trump\u2019s \u201ctermination\u201d threats sound more like a desperate plea for a bailout. Spoiler alert: Powell\u2019s not blinking, and the economy might pay the price for Trump\u2019s tariff tantrum.\r\n\r\n\r\n\r\n\r\n\r\n ","protected":false},"excerpt":{"rendered":"

President Donald Trump has turned up the heat on Federal Reserve Chair Jerome Powell, unleashing a torrent of pressure to […]<\/p>\n","protected":false},"author":7,"featured_media":49297,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[3,1063],"tags":[3709,4180,4222,4224],"class_list":["post-49296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-policy-and-regulations","tag-fed","tag-trump","tag-interest-rates","tag-powell"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/49296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=49296"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/49296\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/49297"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=49296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=49296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=49296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}