Trump cartoon firing Powell Fed
President Donald Trump sparked controversy on Saturday when he posted a cartoon image on Truth Social depicting him firing Federal Reserve Chairman Jerome Powell. The image showed Trump pointing his finger and shouting “YOU’RE FIRED!” at Powell, who was holding a box with his belongings, with the seal of the Federal Reserve in the background.
This move by Trump is just the latest in a series of criticisms he has leveled at Powell, whom he has nicknamed “Too Late Powell” for his cautious approach to cutting interest rates. Despite the central bank’s recent rate cut, Trump has continued to express his dissatisfaction with Powell’s leadership. Powell’s term as chair is set to end in May 2026.
The White House has not yet responded to requests for comment on Trump’s post. Firing the head of the Federal Reserve would be unprecedented, as no U.S. president has ever attempted to do so before. A recent Supreme Court decision affirmed that the president does not have the authority to remove Fed officials at will, a point that Powell himself has reiterated.
Trump’s criticism of Powell has also extended to the renovations of the Fed’s headquarters in Washington, leading to speculation that Trump may attempt to remove Powell for cause. However, recent developments suggest that Trump has softened his stance on the Fed building, while still maintaining his belief that Powell’s policies are detrimental to the economy.
In a separate incident, Trump also tried to fire Fed Governor Lisa Cook in August over alleged mortgage fraud. The Supreme Court is currently reviewing this matter, with the Department of Justice arguing that Cook’s removal would not impact financial markets. Cook’s attorneys, on the other hand, have raised concerns about the potential harm to Fed independence.
Despite these controversies, the financial markets have so far shown little reaction to Trump’s threats against Powell or his attempted firing of Cook. However, economists and investors warn that if Powell were to be removed before his term ends, it could lead to a rise in longer-term interest rates as the Fed’s independence and mandate come into question.
As the debate over Trump’s actions toward the Federal Reserve continues, it remains to be seen how these developments will impact the economy and financial markets moving forward.
