United States President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, signaling that he may remove Powell from office over disagreements regarding monetary policy. Trump called Powell “too late and wrong” on interest rate decisions and stated publicly, “If I want him out, he'll be out of there real fast.”

The president voiced frustration over Powell’s reluctance to cut rates sooner, asserting that inflation is under control and the economy is benefiting from his tariff strategy. Trump dismissed Powell’s recent speech, describing it as a “complete mess,” and insisted that the Fed Chair “should certainly” lower rates immediately.

Reports indicate that Trump has been privately discussing Powell’s removal for months, even consulting former Fed Board member Kevin Warsh about the possibility of replacing him. While Warsh reportedly advised against it, Trump appears determined to assert his authority. The Wall Street Journal and Politico both cited sources close to the White House confirming that internal conversations are ongoing.

Amid growing concern, U.S. Treasury Secretary Scott Bessent is cautioning White House officials about the potential market fallout that could result from firing the Fed chair. According to Politico, Bessent warned that such an action could destabilize financial markets and erode confidence in U.S. institutions.

Senator Elizabeth Warren issued a stark warning during a CNBC appearance, saying that removing Powell would “crash markets” and threaten the independence of central banking in the United States. “If Chairman Powell can be fired by the president, it will crash markets,” she said, labeling Trump’s attempt as a step toward authoritarianism. She also accused Trump of routinely violating the law and undermining democratic norms.

Warren and over 50 other Democrats sent a letter condemning Trump’s tariff policies as a “corrupt scheme,” further highlighting the political stakes in Trump’s ongoing economic strategy. As the 2025 economic outlook remains uncertain, Trump’s renewed attacks on the Fed reflect his desire to push for aggressive rate cuts and maintain pressure on an institution he views as an obstacle.

Powell’s term is set to expire in 2026. Whether Trump will move forward with firing him remains unclear, but the escalating rhetoric has already triggered market jitters and reignited debates over the central bank’s independence from political interference.