On Saturday, President Donald Trump shared a cartoon image illustrating him dismissing Federal Reserve Chairman Jerome Powell.
The share on Truth Social featured an image of him directing his finger and exclaiming “YOU’RE FIRED!” towards Powell, who is depicted with a box containing his personal items. The background displays the emblem of the Federal Reserve.
The image is suggested to be “AI-generated or digitally rendered,” based on visual evaluation by ChatGPT.
Trump has consistently criticized Powell for his careful stance on interest rate reductions, giving him the nickname “Too Late Powell.” The most recent ultimatum came even as the central bank reduced rates earlier this month for the first time this year. Powell’s tenure as chair concludes in May 2026.
The White House has not promptly replied to CNBC’s inquiry for a statement.
Terminating the leading central banker would be unprecedented, as no U.S. president has ever undertaken such an action, although previous Fed chairs have faced criticism. A recent Supreme Court judgment suggested that the president lacks the power to remove Fed officials arbitrarily. Powell has repeatedly asserted that his dismissal is “not allowed per the law.”
The Trump administration has criticized Powell regarding renovations to the Fed’s Washington headquarters, fueling speculation that Trump might seek to dismiss the Fed leader for justified reasons. Although recently Trump has moderated his critiques of the Fed building, he continues to express concerns about Powell negatively impacting the economy by maintaining high rates in his opinion.
Trump attempted to dismiss Fed Governor Lisa Cook in August on accusations of mortgage fraud. The Supreme Court is anticipated to render a decision on that issue soon. The Department of Justice stated on Friday in a Supreme Court filing that firing Cook for alleged wrongdoing would not disrupt the financial markets. Cook’s legal representatives contended in a prior submission to the high court that her removal could jeopardize Fed independence.
So far, the financial markets have shown minimal response to Trump’s threats against Powell or the attempted dismissal of Cook. However, many economists and investors believe that terminating Powell before the conclusion of his term could lead to an increase in long-term interest rates based on the belief that the Fed would prioritize Trump’s interests rather than adhere to its dual mandate from Congress for stable inflation and low unemployment.
