Jerome Powell has expressed skepticism about the tariffs, cautioning that they could lead to inflation or recession, which dampens hopes for interest rate cuts.

U.S. President Donald Trump is intensifying pressure on Federal Reserve Chairman Jerome Powell amid growing concerns about the economic risks associated with his own tariff policies.

The tensions between Trump and the Federal Reserve are escalating, particularly as his controversial economic policies come under scrutiny.

Political uncertainty, coupled with tariff policies, is impacting economic forecasts, as noted by IMF Chief Economist Pierre-Olivier Gourinchas.

In an effort to stimulate the economy, Trump is advocating for quicker interest rate cuts from the Fed, as uncertainties surrounding his tariffs and plans for increased domestic production persist.

Recently, Trump publicly labeled Powell a 'major loser' but later indicated he would not fire him, citing potential legal and economic repercussions.

Analysts warn that removing Powell could send negative signals to the markets, potentially raising long-term interest rates and jeopardizing the U.S. dollar's status as a reserve currency.

Critics, including prominent billionaires like Ken Griffin and Ray Dalio, argue that Trump's tariffs are damaging America's global standing and pushing the economy closer to recession.

The International Monetary Fund (IMF) has issued warnings that Trump's trade war could significantly hinder global economic growth, projecting U.S. growth at only 1.8% for 2025.

Despite a temporary pause on tariffs against most countries, Trump continues to advocate for his economic strategy and has criticized Powell's monetary policy management.

In his social media posts, Trump has criticized Powell's inflation-fighting measures as too slow, while Powell remains committed to his current policy stance amid ongoing economic uncertainty.

Challenging the Fed's independence, which is legally protected, could undermine investor confidence in the U.S. economy and potentially trigger market shocks.