President Donald Trump has ramped up his fiery feud with Federal Reserve Chair Jerome Powell, boldly declaring in a Truth Social post that Powell's "termination cannot come fast enough." This remarkable outburst occurred just a day after Powell warned that the tariffs implemented by the Trump administration were far "larger than expected" and could jeopardize economic stability, fueling inflation.

In his post, Trump pointed to the European Central Bank's latest move—cutting interest rates for the seventh time—as a sign that the Federal Reserve should have followed suit much sooner. He insisted that the Fed should lower interest rates now, dismissing Powell's approach as "TOO LATE AND WRONG," while cheekily adding that prices for oil and essentials, even eggs, are on the decline.

Powell had previously articulated that the newly imposed tariffs could lead to a "challenging scenario" for the U.S. economy, suggesting a potential conflict with the Fed’s dual mandate of maintaining low unemployment and price stability. His remarks sent shockwaves through the market, contributing to a sell-off that saw stocks tumble.

Interestingly, despite Trump's mounting criticism, he did not clarify whether he believed Powell should be ousted immediately or once his term ends in May 2026. Powell, understanding the stakes, has firmly stated that the president lacks the authority to fire him. After Trump's 2016 election victory, he made it clear he wouldn't resign if asked and that his dismissal is "not permitted under law."

Even if Trump somehow managed to boot Powell from his position, it wouldn’t significantly impact interest rates directly. These rates are determined by the Federal Open Market Committee (FOMC), composed of 12 voting members including the seven Board of Governors and various Reserve Bank presidents.

In a notable response to Trump’s tariffs, the European Central Bank’s latest interest rate cut to 2.25% marks the lowest level seen in over two years, underscoring the ongoing implications of Trump's economic policies.