“President Trump is threatening to fire Federal Reserve Chair Jerome Powell unless he cuts interest rates to cushion the blow from his tariffs,” the Wall Street Journal reports.
“The problem is twofold. It isn’t clear the president has the legal authority to dismiss Powell before his term ends next year.
And Trump’s trade war has made rate cuts more difficult for now because the Fed fears acting to shore up the economy could worsen inflation.”“That tension has left the two men on a collision course without any easy escape—unless Trump backs down on tariffs or until the economy shows signs it is crumpling under the weight of the import duties.”