Trump Claims Powell Remains at Fed Because 'He Can't Find Another Job, No One Wants Him'
Trump posted on Truth Social stating that Jerome Powell wants to stay at the Fed because "he can't find another job, no one wants him."
Trump referred to Powell as "Too Late Powell," suggesting that his desire to remain is due to difficulties in the job market.
Market participants are concerned about the Fed's independence, with funds shifting from interest-sensitive assets to safe havens or sectors benefiting from Trump's policies, benefiting Trump's supporters while putting pressure on Fed officials and traditional defenders of independence.
Source: Public Information
ABAB AI Insight
Trump has repeatedly criticized Powell's monetary policy since his 2024 campaign, threatening to replace him at the end of his term in 2025-2026. He previously stated he would not fire him early but continues to apply pressure. This statement continues his path of challenging the Fed's independence through public opinion.
In terms of capital flows, Trump is guiding market expectations for low interest rate policies through Truth Social and public statements, leading investors to preemptively allocate to inflation/growth-sensitive assets like gold, stocks, and real estate, while pressuring Powell to accelerate rate cuts to align with his fiscal expansion, creating a positive feedback loop between policy expectations and capital flows.
Similar to past cases of public conflict between presidents and Fed chairs (e.g., Nixon and Burns), this occurs during a transition from the Fed's "high independence" to "increased executive pressure," with Powell's term lasting until May 2026.
Essentially, this represents a regulatory change: the traditional statutory mechanism of the Fed being "independent of politics" is weakened by public attacks from the president, as Trump alters the rate decision-making path through personnel expectations and policy pressure, restructuring monetary policy from a "technocratic-led" to an "executive-market interactive" execution mechanism.