During his first term as president, Donald Trump appointed Jerome Powell to serve as chairman of the Federal Reserve. But having appointed someone to a specific position has certainly never stopped Trump from feuding with them before.
In 2019, before his first term was up, Trump once mused over whether Powell was a bigger “enemy” than President Xi of China. Since returning to the White House, Trump has been implying that he wants Powell, whose term runs until 2026, to step down from his position. Despite the Fed’s historic independence, Trump has been demanding in recent weeks that Powell cut interest rates, dubbing him “Too Late,” and even stated that Powell’s removal can’t come soon enough.
Trump was warned of empty shelves and financial turmoil from tariffs and firing Powell. His U-turn has stocks roaring higher https://t.co/7kSNxVdDIc
— Ram Ramgopal (@RamCNN) April 23, 2025
Any attempt by Trump to fire the Fed chairman would likely lead to a court fight, as well as possible market turmoil. Powell has been on the record as stating that he would not resign, and that Trump does not have the power to fire him. However, Trump could nominate a different Fed chairman in 2026.
Stay up-to-date with the latest news!
Subscribe and start recieving our daily emails.
On Tuesday, though, Trump appeared to back down, telling the press that “I have no intention of firing” Powell as Fed chairman.
CNN reported on Wednesday why Trump backed down.
The president “met privately in the Oval Office with chief executives of four major US retail companies who conveyed concerns about rising economic fallout from Trump’s tariff policy and the uncertainty it has created for financial markets,” CNN said. The CEOs, from Walmart, Target, Home Depot and Lowe’s, “delivered a blunt message about interruptions in the supply chain and its effects on consumers.”
The switch on tariff policy, as well as the backing off of threats to fire Powell, are believed to have inspired Tuesday’s stock market rally.
According to a segment this week by MSNBC’s Lawrence O’Donnell, the switch on Powell was humilitating for Trump, because he had to acknowledge that he doesn’t have power over the Fed chairman.
“And so now the humiliated clown Donald Trump, who has been the subject of some of the finest economic editorial writing the Wall Street Journal has ever done, has decided that it’s time to back down and desperately assure Wall Street ‘I have no intention of firing him.'”
Photo courtesy of the YouTube screengrab.
