Washington ( The COW News Digital)U.S. President Donald Trump has signaled that he is seriously considering authorizing a major lawsuit against Federal Reserve Chairman Jerome Powell, accusing him of making policy decisions that have placed “unnecessary pressure” on the American economy.
In a statement to reporters, Trump said he believes Powell’s actions have created uncertainty in the markets and slowed economic growth. “I am seriously thinking about allowing a major case against Powell,” Trump remarked. “His decisions have caused harm to our economy, and it’s time to hold him accountable.”
The president once again reiterated his demand for an immediate cut in interest rates, arguing that such a move is essential to supporting U.S. businesses and boosting economic momentum. According to Trump, the Federal Reserve’s current monetary stance has failed to provide the stimulus the economy needs, especially in the face of global market volatility and competitive pressures.
This latest confrontation marks an escalation in the ongoing tension between the White House and the Federal Reserve. While disagreements between presidents and central bank leaders are not new, the consideration of legal action is viewed as a highly unusual and potentially unprecedented step.
Economic analysts warn that such a move could have far-reaching consequences, both politically and financially. “If the president proceeds with a lawsuit, it could shake investor confidence in the independence of the Federal Reserve,” said one Washington-based economist. “It would send a strong signal that political pressure is directly challenging the Fed’s autonomy.”
The Federal Reserve, under Powell’s leadership, has maintained that its decisions are based on long-term economic stability rather than short-term political goals. However, Trump’s public criticism has repeatedly targeted Powell for not moving quickly enough to lower rates, particularly during periods of market instability.
Observers note that the potential lawsuit would not only test the limits of executive power over an independent financial institution but could also become a key flashpoint in the broader debate over the role of the central bank in managing the U.S. economy.
While no formal legal steps have yet been taken, Trump’s remarks suggest that the dispute is unlikely to fade anytime soon. The political and economic stakes remain high, with markets closely watching for any developments that could influence monetary policy in the months ahead.
