Emre Yumlu 
U.S. President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, labeling him a “major loser” and insisting that interest rates must be lowered without delay.
Posting on the Truth Social platform, Trump stated that many experts are currently calling for “preemptive rate cuts”.
He claimed that inflation is almost non-existent in the U.S., while prices for energy and many goods are declining.
“These costs are trending downward, just as I predicted,” Trump wrote. “So there is virtually no inflation left. But if Mr. ‘Always Too Late,’ a major loser, doesn’t lower rates now, the economy could start to slow down.”
Could Trump Remove Powell from Office?
Trump’s latest remarks coincide with reports suggesting that his team is exploring the possibility of removing Powell before his term ends in May 2026. Powell, however, has made it clear in earlier statements that the president cannot legally dismiss him.
Market Volatility Could Follow Any Attempt
According to Krishna Guha, Vice Chairman at Evercore ISI, any effort to oust Powell could spark heavy market sell-offs. Guha warned that undermining Federal Reserve independence might delay any potential rate cuts and cause significant disruptions.
“If this escalates into an actual attempt to remove the Fed Chair,” he said, “we could see yields spike, the dollar weaken, and equity markets plunge.”
Guha concluded by saying,
“It’s hard to believe the administration truly wants to trigger such a financial shock.”
Trump’s increased pressure on Powell and allegations of impeachment have raised concerns among investors about the Fed’s independence, and markets are now watching closely to see how the tension plays out and whether the Fed will change course on monetary policy.
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