Weekend overtime meme, Trump really wants to "fire" the Federal Reserve Chairman

Trump once again called for the "firing" of Powell on social media, which may further raise concerns about the independence of the central bank.

On Saturday (September 27), U.S. President Trump posted a cartoon image on his social media platform Truth Social, depicting him shouting his iconic "You're fired!" at Federal Reserve Chairman Powell, who is holding a box containing personal items.

The image shows him pointing at Powell, with the Federal Reserve's official seal in the background. Visual analysis suggests that the image is AI-generated or a digital illustration. Analysts pointed out that Trump's action escalates the public conflict between him and the Federal Reserve.

Despite the Federal Reserve's first interest rate cut this month, Trump has expressed strong dissatisfaction with Powell's cautious monetary policy. He has previously criticized Powell for being too slow in cutting rates and nicknamed him "Too Late Powell." Powell's term as Federal Reserve Chairman will end in May 2026.

Legal experts noted that firing the Federal Reserve Chairman is unprecedented in U.S. history, and recent Supreme Court rulings indicate that the president does not have the authority to arbitrarily dismiss Federal Reserve officials. However, economists warn that prematurely firing Powell could lead to rising long-term interest rates, with the market concerned about the erosion of the Federal Reserve's independence.

Trump Threatens to "Fire" Powell Again

Trump has previously referred to Powell as "incompetent" and "too slow," continuously attacking the Federal Reserve Chairman's hesitance regarding interest rate cuts. Analysts pointed out that this latest action reflects Trump's ongoing dissatisfaction with the Federal Reserve's monetary policy.

Although the Federal Reserve cut rates for the first time this year and hinted at possible further cuts in October and December, Trump still believes the central bank's actions are too slow.

It is noteworthy that firing the Federal Reserve Chairman faces significant legal hurdles. No president in U.S. history has attempted to dismiss the Federal Reserve Chairman, although previous presidents have criticized the central bank's leaders.

Recent Supreme Court rulings indicate that the president does not have the authority to arbitrarily dismiss Federal Reserve officials. Powell has repeatedly emphasized that firing him "is not permitted by law."

The Trump administration has previously criticized Powell over the renovation of the Federal Reserve's Washington headquarters, leading to speculation that Trump might attempt to use this as a reason to dismiss the central bank leader. However, Trump's recent criticisms of the Federal Reserve building have softened, while he continues to attack Powell for maintaining high interest rates that harm the economy.

The Ongoing Struggle for Federal Reserve Independence

In addition to publicly criticizing Powell, Trump has also exerted influence over Federal Reserve personnel arrangements.

Trump has taken concrete actions to try to influence the Federal Reserve. In August, he attempted to dismiss Federal Reserve Governor Lisa Cook on the grounds of alleged mortgage fraud, with the Supreme Court set to rule on the matter.

The Justice Department stated in Supreme Court documents on Friday that dismissing Cook for alleged misconduct would not harm financial markets. Cook's lawyer argued in previous court documents that her removal could undermine the independence of the Federal Reserve Trump also temporarily appointed Stephen Miran, the chairman of the White House Council of Economic Advisers, to the Federal Reserve Board to potentially influence future Federal Reserve decisions.

Facing political pressure, Powell reiterated the independence of the Federal Reserve during an event with the Rhode Island Chamber of Commerce on Tuesday: "Whenever we make decisions, we never consider political factors. What we focus on is what is most beneficial for the people we serve and what is the best policy."

Powell also stated:

"We do not engage in back-and-forth debates with outsiders. We just do our job and focus on our work. That is our approach."

His remarks were interpreted by the market as a direct response to Trump's pressure, emphasizing that the central bank will continue to act independently according to its statutory responsibilities.

Although the financial markets reacted limitedly to Trump's threats to fire Powell or attempt to remove Cook, many economists and investors believe that firing Powell before the end of his term could lead to rising long-term interest rates, as the market fears the Federal Reserve may begin to act according to Trump's intentions