Trump Turns Up Heat on Powell as Monetary Feud Escalates: Fed Chair Under Fire Amid Trade Wars

• Can Trump Actually Fire the Fed Chair? White House Advisor Weighs In
• Trump's High-Stakes Tariff Gambit: Allies in the Crosshairs
• The Powell Paradox: Criticism vs. Action
• Trade War Chess: Who's Winning?
• Copper Crisis or Strategic Masterstroke?
• Fed Under Microscope: $2.5B Renovation Raises Eyebrows
• Brazil Tariffs: Economic Policy or Political Payback?
• What's Next in the Trump-Powell Showdown?

Washington's economic drama reached new heights this week as President TRUMP intensified his public feud with Federal Reserve Chair Jerome Powell while simultaneously unleashing fresh tariffs on key allies. The White House economic advisor Kevin Hassett dropped a bombshell during an ABC interview, confirming the president's legal authority to remove Powell under certain conditions. Meanwhile, Trump's latest 50% tariffs on Brazilian imports and copper - announced alongside existing duties on Canada, EU, and Mexico - sent shockwaves through global markets. This dual-front offensive on monetary policy and trade relations marks a volatile new chapter in U.S. economic leadership, with the administration now scrutinizing the Fed's $2.5 billion headquarters renovation amid growing tensions.

Can Trump Actually Fire the Fed Chair? White House Advisor Weighs In

The constitutional showdown over Fed independence took center stage when Hassett told ABC's Jonathan Karl that Trump "has the authority to remove Powell if there's cause like misconduct or neglect of duty." This comes after months of unprecedented presidential criticism targeting Powell's interest rate decisions, which Trump claims have cost the U.S. "billions" and hindered economic dominance. While stopping short of immediate dismissal threats, the administration has escalated its scrutiny of the Fed - including questioning the legitimacy of its massive headquarters overhaul, the most expensive federal building project in D.C. history. "The Fed could print money willy-nilly...they're essentially unlimited," Hassett remarked, highlighting tensions over the central bank's congressional independence.

Trump's High-Stakes Tariff Gambit: Allies in the Crosshairs

Effective August 1, new 50% tariffs will hit Brazilian imports despite America's consistent trade surplus with Brazil since 2007. Critics see political retaliation against Brazil's legal proceedings against Trump ally Jair Bolsonaro. "This is part of a broader economic security strategy to onshore production," Hassett defended, while acknowledging the Bolsonaro factor. The administration similarly shocked markets with 50% copper tariffs, drawing fire from manufacturers who warn of cost spikes for aircraft, electronics, and ammunition. Hassett downplayed inflation risks, emphasizing national security needs: "Copper is critical for our weapons systems - we've got the reserves but not enough production."

The Powell Paradox: Criticism vs. Action

Trump's monetary feud reached fever pitch this week as he blamed Powell for not cutting rates "by three points," claiming this hindered U.S. economic leadership. Yet paradoxically, the president continues ruling out Powell's immediate removal. Market analysts suggest this reflects Trump's recognition of the economic turbulence that WOULD follow such an unprecedented move. Instead, the administration appears focused on pressuring the Fed through public criticism and institutional scrutiny - including investigations into whether the central bank overstepped its authority with the lavish headquarters project.

Trade War Chess: Who's Winning?

The tariff blitz continues Trump's "Art of the Deal" approach, as Hassett put it: "He's drawn a line in the sand." But with few concrete agreements beyond preliminary frameworks with the UK, Vietnam, and China, the strategy's effectiveness remains unproven. The EU has already prepared retaliatory measures, while Canadian officials called the latest duties "punitive." Interestingly, the administration frames these moves as negotiation tactics rather than final positions - but with global supply chains already adjusting, some economists warn the damage may outlast any eventual deals.

Copper Crisis or Strategic Masterstroke?

The 50% copper tariffs sparked particular controversy, with The Wall Street Journal editorial board slamming it as "self-inflicted harm" to U.S. manufacturers. But Hassett framed it as national security necessity: "In a crisis, we can't depend on foreign copper for defense systems." Industry analysts note that while America sits on significant copper reserves (about 35 million metric tons), it currently imports about 30% of consumption. The tariffs could accelerate domestic mining projects - if manufacturers can stomach short-term price hikes.

Fed Under Microscope: $2.5B Renovation Raises Eyebrows

The administration's scrutiny of the Fed's massive headquarters overhaul adds another LAYER to the monetary feud. Critics question why an independent entity controlling its own budget needs what amounts to the most expensive federal building project ever. "There's legitimate debate about whether this crosses into fiscal policy territory," noted one congressional staffer. The renovation controversy gives Trump leverage in his broader campaign to assert more executive influence over monetary policy.

Brazil Tariffs: Economic Policy or Political Payback?

The 50% duties on Brazilian goods raised eyebrows given the countries' longstanding trade surplus favoring America. Some trade experts see connections to Brazil's legal actions against former president Bolsonaro, whom Trump publicly supported. "The timing and targeting seem too coincidental," remarked a former USTR official. Hassett's admission that Bolsonaro's treatment "played a role" lends credence to these claims, though he maintained the primary motive was reshoring production.

What's Next in the Trump-Powell Showdown?

With rate cuts apparently off the table for now and tariffs threatening global trade stability, all eyes turn to the Fed's July meeting. Will Powell bow to presidential pressure, or maintain the central bank's traditional independence? Meanwhile, manufacturers brace for copper price shocks, and trade partners prepare countermeasures. One thing's certain - in Trump's Washington, economic policy remains anything but predictable.