Jack Lang Resigns as Head of Arab World Institute Amid Epstein Controversy 
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Ohio Man Indicted for Alleged Threat Against Vice President JD Vance, Faces Additional Federal Charges 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Federal Judge Restores Funding for Gateway Rail Tunnel Project 
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China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
U.S. President Donald Trump said he is not planning to fire Federal Reserve Chair Jerome Powell but refused to rule it out, intensifying criticism over Powell’s reluctance to cut interest rates. Speaking Wednesday, Trump labeled Powell a “terrible” chair and blamed him for keeping rates in the 4.25%-4.50% range amid rising inflation from Trump’s tariff policies.
Earlier, a Bloomberg report suggesting Powell’s imminent dismissal triggered market volatility—stocks fell, the dollar dipped, and Treasury yields jumped. Trump denied the report but confirmed he discussed Powell’s removal with GOP lawmakers. While reaffirming the Fed's independence, Trump hinted Powell could be removed for cause, referencing unproven allegations tied to a $2.5 billion renovation of the Fed’s headquarters.
Powell, first appointed by Trump in 2017 and reappointed by President Biden, has stated he will serve his term through May 2026. Legal precedent prevents firing a Fed chair over policy disagreements, requiring clear misconduct or cause. The Supreme Court recently upheld this interpretation.
Trump’s repeated attacks have alarmed economists and lawmakers. Republican Senator Thom Tillis warned that firing Powell would undermine the Fed’s independence and global market confidence. Senate Majority Leader John Thune and House Financial Services Chair French Hill dismissed the likelihood of Powell’s dismissal.
Amid the controversy, Powell asked the Fed’s inspector general to review the renovation project after Trump’s budget chief accused him of wasteful spending. The Fed publicly disputed these claims.
Economists like JPMorgan’s Michael Feroli warned that weakening the Fed’s autonomy could stoke inflation fears and increase borrowing costs. Meanwhile, speculation about Powell’s successor grows, with Treasury Secretary Scott Bessent and Fed Governor Christopher Waller among the rumored candidates.
Trump’s pressure campaign risks destabilizing the Fed at a critical economic juncture.
