During an official Oval Office meeting with Italian Prime Minister Giorgia Meloni, President Donald Trump reignited his push against Federal Reserve Chair Jerome Powell, warning he could remove him if rate cuts don’t come soon—just hours after another round of policy easing from Europe.
On Thursday, Trump and Meloni addressed reporters following bilateral talks on trade, China, Ukraine and broader transatlantic relations. The Italian leader praised her host’s role in global affairs, saying: “The goal for me is to make the West great again.”
Yet, Trump swiftly redirected the focus toward domestic monetary policy, using the moment to sharply criticize Powell.
‘Oh, He’ll Leave’
Trump accused the Fed chair of playing politics and holding rates unnecessarily high despite disinflationary signals across major sectors.
“He’s too late. Always too late. A little slow. And I’m not happy with him,” Trump said, adding, “Oh, if I want him out, he’ll be out of there real fast. Believe me.” He continued: “He’ll be out of there if I ask him.”
Powell’s term as Fed chair runs through May 2026, and he has previously defended the central bank’s independence by noting that his position is protected by statute. A Federal Reserve chair can only be removed for cause, which has historically been interpreted as misconduct or incapacity—not policy disagreements.
Trump pointed directly to the ECB’s aggressive monetary easing as a model the Fed should follow.
“In Europe, they’ve reduced [rates] seven times… but our guy wants to play cute,” he said, warning that keeping U.S. rates higher puts the economy at a disadvantage.
The U.S. Dollar Index – as tracked by the Invesco DB USD Index Bullish Fund ETF UUP – was up 0.2% on Thursday, yet it has fallen by more than 10% since Trump’s inauguration in January.
Inflation Is Essentially Gone, Trump Says
The president claimed that inflation is no longer a concern, arguing that falling oil, grocery and egg prices show clear evidence of relief. “We essentially have no inflation. It’s hard to have inflation when oil goes down,” he said.
Trump insisted the Fed is the only institution holding back the economy, saying, “Interest rates should be down now… they’re not very smart. The Federal Reserve is playing politics.”
“We’re essentially being played by our own central bank,” he added.
As Trump left the podium Thursday, he summed up his stance plainly: “The Fed owes it to the American people to get interest rates down. That’s the only thing he’s good for.”
Meloni Meeting Covers Trade, China, Ukraine
Meloni hinted at a deeper NATO commitment, signaling Italy’s increasing willingness to meet defense spending targets.
The two also briefly discussed China, with Trump noting, “We’re doing very well with negotiations… everyone wants to make a deal. If they don’t, we’ll make it for them.”
A U.S.-Ukraine mineral deal is expected to be signed next Thursday, as part of efforts to deepen Western investment and counter Russian influence.
Trump reiterated his skepticism toward Ukrainian President Volodymyr Zelenskyy, stating, “I’m not a big fan of Zelenskyy. He hasn’t done a good job.”
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