On April 17 local time, U.S. President Trump posted on social media to blast Federal Reserve Chairman Powell, accusing him of being "always too late and always wrong" in terms of the decision-making for interest rate cuts, and stating that his departure "came too late."
That day, Trump posted on the "Truth Social" platform mentioning the European Central Bank's expected interest rate cut while criticizing Powell as being "always too late" and "always wrong," with the released reports being a "complete mess."
In the face of Trump's tariff policy impacting global trade situation, the European Central Bank announced on the 17th that it would cut the three key interest rates in the eurozone by 25 basis points each. This is the seventh interest rate cut by the bank since June last year.
Trump believed that Powell should have followed the European Central Bank in cutting interest rates long ago, and his departure "came too late."
The Financial Times of the UK pointed out that it was unclear whether Trump was referring to Powell's expected end of term as Federal Reserve Chairman in May 2026 or hinting at plans to remove him from office prematurely.
Trump and Powell have had a long-standing rift, with Trump urging the Federal Reserve to cut interest rates multiple times and even threatening to dismiss Powell.
However, in December last year, Trump stated that he would not seek to remove Powell from office before the end of his term. Powell has repeatedly emphasized that he will not end his term prematurely.
According to Article 10 of the Federal Reserve Act, members of the Federal Reserve Board (including the chairman) can be removed from office "for cause" by the president. Legal scholars typically interpret "for cause" as serious misconduct or abuse of power.
A few days ago, Trump posted that Powell should "stop playing politics" and stop being "late" regarding interest rate cuts.
On the 16th, Powell said that imposing tariffs would lead to higher inflation and suppress economic growth. Before deciding whether to adjust interest rates, the Federal Reserve will continue to observe the actual impact of the imposed tariffs and other economic policies.
This article is an exclusive contribution from Guancha.cn and cannot be reprinted without permission.
Original source: https://www.toutiao.com/article/7494299696610001418/
Disclaimer: The views expressed in this article are solely those of the author and welcome your opinions to be expressed through the "like/dislike" buttons below.