President Donald Trump is once again putting Fed Chair Jerome Powell in the crosshairs, slamming him on Truth Social for being “always TOO LATE AND WRONG” and demanding his termination as market anxiety and recession chatter intensify.

Trump’s early-morning post lambasted Powell’s decision not to lower interest rates, contrasting it with aggressive cuts abroad. “The ECB is expected to cut interest rates for the 7th time,” Trump wrote. “Yet ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete ‘mess!’”

Trump claimed that inflationary pressures have eased and touted the impact of tariffs, saying, “Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS.” He argued the Fed should have already slashed rates and must act now, ending with a fiery demand: “Powell’s termination cannot come fast enough!”

The post came as U.S. equity markets continued to slide and fears of a looming slowdown gained traction despite resilient hard data. Meanwhile, Europe’s central bank just approved its seventh rate cut, citing global trade tensions and a dimming economic outlook. Even hawkish policymakers abroad appear to agree it’s time to loosen policy, which has only fueled Trump’s frustration at Powell’s reluctance to follow suit.

While Trump may want Powell gone, it’s not that simple.

The Chair of the Federal Reserve is appointed by the President and confirmed by the Senate to serve a four-year term. Powell’s current term as chair extends until May 2026, and he remains on the Board of Governors through 2028. Under the Federal Reserve Act, the President can only remove a Fed governor “for cause,” meaning legitimate misconduct or neglect of duty—not mere policy disagreements.

That hasn’t stopped Trump from applying public pressure. In a past press conference, Powell was asked if he would resign if asked by Trump. His response was direct: “No.” He added that the law doesn’t allow for removal over political differences, reinforcing the Fed’s institutional independence.

That independence, however, has been increasingly scrutinized. Trump’s administration has already removed top officials from other quasi-independent agencies like the Federal Trade Commission and the Merit Systems Protection Board. A pending Supreme Court case could potentially reshape the legal framework surrounding agency independence, though Powell noted this week he doesn’t believe the ruling will apply to the Fed.

Still, Trump allies are planning for the long game. Treasury Secretary Scott Bessent recently hinted that the administration is eyeing a possible replacement for Powell this fall. While reaffirming a commitment to central bank independence, Bessent added that the timeline for vetting new candidates is about six months away—meaning the pressure campaign may just be starting.

Critics have long accused Powell’s Fed of playing politics. In 2019, former New York Fed President Bill Dudley suggested the central bank should resist Trump’s policies by refusing rate cuts—a stance that undermined the Fed’s supposed apolitical stance. Trump has repeatedly cited such moments as proof of bias.

And timing remains a sore spot. Trump pointed out that the Fed cut rates by 50 basis points before the 2020 election—when financial conditions were already loose—but is now refusing to act despite much tighter conditions today.

Powell maintains that rate decisions are data-driven, not politically motivated. But with recession talk rising and Trump eager to juice the economy heading into 2026, the heat is only going to intensify.

Trump may not have the legal authority to fire Powell outright—but that won’t stop him from hammering him in public, day after day, until the Fed flinches or the calendar flips.