The illustration showed Trump pointing his finger and shouting "YOU’RE FIRED!" at Powell, who was drawn holding a box of belongings in front of the Federal Reserve seal.
The image, which appeared to be digitally illustrated or AI-generated, underscores Trump's ongoing frustration with Powell’s cautious approach to cutting interest rates. Trump has repeatedly branded the Fed chief "Too Late Powell," arguing that the central bank has been too slow to ease policy despite lowering rates earlier this month for the first time this year. Powell’s current term as chair runs until May 2026.
A Clash Over Fed Authority
While Trump's post grabbed headlines, the legal reality is more complicated. No U.S. president has ever attempted to fire a sitting Fed chair, and a recent Supreme Court decision indicated that the president does not have the authority to remove Federal Reserve officials at will. Powell himself has said repeatedly that his dismissal is "not permitted under the law."
The White House did not immediately respond to requests for comment on the post.
Past Tensions Between Trump and Powell
Trump's criticism of Powell is not new. His administration has previously blasted the Fed over costly renovations to its Washington headquarters, raising speculation that Trump might try to remove Powell "for cause." While those attacks have eased in recent months, Trump has continued to argue that Powell is hurting the economy by keeping rates too high.
The latest cartoon post comes against a backdrop of broader tensions between Trump and the central bank. In August, Trump attempted to fire Fed Governor Lisa Cook over alleged mortgage fraud. That case is now before the Supreme Court. The Department of Justice has argued that removing Cook would not harm financial markets, while her attorneys countered that such a move would undermine Fed independence.
Market Reaction Muted—for Now
So far, financial markets have shown little reaction to Trump's threats against Powell or his attempted firing of Cook. But many economists warn that an actual dismissal of Powell before his term ends could have serious consequences.
Analysts say such a move could push long-term interest rates higher, as investors might assume the Fed would begin acting in line with Trump's political agenda rather than its dual mandate from Congress: maintaining stable inflation and maximum employment.
The Bigger Picture
Trump's cartoon post may have been symbolic, but it highlights the unusual pressure the White House is placing on the central bank. While presidents have often criticized Fed chairs in the past, the notion of firing one outright remains unprecedented.
For now, Powell remains in place, markets remain calm, and the Fed continues to chart its own course. But the episode underscores how political rhetoric around the Fed can ripple through investor sentiment—even if the legal guardrails around central bank independence remain firmly in place.