Trump plans to fire Fed Chairman Powell – chaos and inflation threaten!

US President Donald Trump plans to fire Jerome Powell, chairman of the Federal Reserve. This was done by Mercury reported. Trump is unhappy with Powell's refusal to lower interest rates, which would mean cheaper loans for businesses and developers. Despite constitutional concerns, Trump's advisers are already trying to remove Powell as quickly as possible.

White House economic adviser Kevin Hassett confirmed on April 18 that Trump and his team were exploring the possibility of a firing. Powell himself has emphasized that the Federal Reserve is independent and he plans to remain in office until the end of his term in May 2026.

Impact on the US economy

A premature replacement of Powell could cause significant problems for the US economy, as Trump's trade wars and tariffs have already fueled inflation. Experts warn that a rate cut could further exacerbate inflation. An example of this is the situation in Turkey, where inflation rose to over 80 percent before interest rates increased. The key interest rate will be 42.5 percent in March 2025, with inflation already gradually falling.

In addition, economists fear that Trump could introduce more price controls, especially in supermarkets, as inflation rises. A dozen eggs now cost almost $7, whereas the price in January was $5. Although Trump claims food prices have fallen, economists agree his tariffs will further increase prices in the US. Isabella Weber, an economist, called the situation a “politically engineered inferno” and suggested reducing tariffs rather than imposing price controls.

Additionally reported Mirror about the price losses that occurred after Trump's attacks on Powell over his interest rate policy. The economic pressure on the USA could increase further if Trump actually takes action against the Federal Reserve.