Trump’s march to the Oval Office followed the drumbeats of ‘Make America Great Again’. But is Trump falling out of tune due to his relentless barrage on the Fed Chair, Jerome Powell and the institutional independence of the Federal Reserve?

In a series of Trump’s verbal threats to Powell, 23 April 2025 will go down in history books. It marked a sudden pivot from Trump’s crusade against Powell.

“I have no intention of firing him,” Trump told reporters in the Oval Office on Tuesday. “I would like to see more ideas from him to lower interest rates,” he added.

US stock futures, which are traded outside of regular market hours, surged following Trump’s comments, with contracts linked to the benchmark S&P 500 and tech-heavy Nasdaq-100 rising more than 1.70 percent and 1.90 percent, respectively.

The US dollar rose more than 1 percent against major currencies.

A Deep-Seated Feud

To truly understand the weight of Trump’s latest pivot, it’s worth rewinding the clock. The friction between Trump and Jerome Powell didn’t begin in 2025.

It’s part of a deeper, years-long broadside that dates back to 2017, when Trump first nominated Powell as Fed Chair.

What started as a routine appointment quickly evolved into one of the most public and persistent battles over central bank independence in modern American history.

Here’s how that story has unfolded over time.

Timeline: Trump’s Criticisms Of Jerome Powell Over Interest Rates

2017

2 November 2017: President Trump nominates Jerome Powell as Chair of the Federal Reserve, replacing Janet Yellen.

2018

19 July 2018: Trump publicly criticises the Federal Reserve for raising interest rates, stating he’s ‘not thrilled’ with Powell’s decision, breaking a long-standing tradition of presidential silence on Fed policy.

10 October 2018: Trump escalates his criticism, saying the Fed has ‘gone crazy’ with its interest rate hikes.

2019

23 August 2019: In a tweet, Trump compares Powell to Chinese President Xi Jinping, asking, “Who is our bigger enemy, Jay Powell or Chairman Xi?”

2020

March 2020: Amid the COVID-19 pandemic, the Fed slashes interest rates to near-zero. Trump praises the move but insists it should have happened sooner.

2021 – 2022

Throughout 2021–2022: Although out of office, Trump continues to criticise Powell, especially as inflation rises, claiming Powell has lost control of inflation.

2023–2024

Mid-2024: While campaigning for the 2024 election, Trump threatens to fire or demote Powell if re-elected, sparking debates over the Fed’s independence.

2025

23 April 2025: President Trump backs down on his threat to fire Powell, stating he has no intention of removing him but urges the Fed to lower interest rates. This shift eases investor anxiety over the Fed’s independence.

Trump Against Powell: A Power Play Worth Paying Attention To

As markets continue to react to every exchange between Trump and Powell, traders should keep a close eye on how this relationship unfolds.

While Trump’s recent softening in tone may offer temporary relief, history shows that his stance can shift swiftly and dramatically.

With interest rates, inflation, and market stability hanging in the balance, even a single comment from either figure can trigger significant volatility. Staying updated on this high-stakes power dynamic isn’t just about following politics.

It’s a strategic move for anyone navigating today’s markets.

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