Trump Considering Removing Powell as Fed Chair Amid Rate Dispute

The administration is considering removing Jerome Powell from his position as the Chair of the Federal Reserve, according to a statement today (April 18, 2025) by the White House’s chief economic advisor. ‘The President and his team will continue to examine the issue of dismissing Jerome Powell,’ said National Economic Council Director Kevin Hassett. Notably, Donald Trump has renewed his attacks on the Fed’s top official regarding interest rate policies. Jerome Powell has been in the crosshairs of President Trump for several days due to his refusal to lower the Fed’s interest rates. ‘I’m not happy with him. I’ve informed him, and if I want him gone, he’ll leave quickly—believe me,’ Trump stated yesterday. The powers of the American president do not allow for the direct dismissal of Fed chairs. To remove Jerome Powell from his duties, the billionaire Republican would need to initiate a lengthy process and prove that Powell committed a serious mistake. Trump appointed Jerome Powell as Fed chair during his first term in 2018 but now accuses him of politicizing the U.S. central bank. The Fed chair warned on Wednesday about the effects of tariffs decided by the American president, which ‘will certainly lead to at least temporary inflation increases.’ Trump significantly increased import tariffs on products entering the United States, imposing taxes of at least 10%.