April 21 - During his second term as president, Donald Trump didn't shy away from going head-to-head with the U.S. Federal Reserve and its chairman, Jerome Powell, over interest rates.
Trump repeatedly pushed for the Fed to slash rates, arguing it would supercharge economic growth. But the Fed held its ground, pointing to inflation concerns and the need to protect long-term stability.
As tensions grew, Trump ramped up the pressure. He took to social media and public speeches, calling Powell “too late and wrong,” and even floated the idea of firing him, something that raised eyebrows across legal and economic circles. Critics said removing the Fed chair could cross legal lines and damage the bank's reputation for independence.
All of this happened while Trump was waging a tariff battle with China and others, trying to boost U.S. industry. But those tariffs also raised costs for American businesses, adding another layer of economic strain.
Through it all, Powell made clear the Fed wouldn't bend to political pressure. The message? The central bank answers to the economy, not the White House.
Trump's clash with the Fed marked one of the most public tests of central bank independence in recent memory.
