Alright folks, grab a cup of coffee because we’ve got another classic D.C. showdown brewing—this time, it’s Senator Elizabeth Warren versus former President Donald Trump, and the battlefield is... interest rates. Yeah, you heard that right. Something as snoozy-sounding as the federal funds rate is now the latest front in the political cage match, and trust me, it’s more dramatic than you’d think.
So let’s lay it out: President Trump hopped on Truth Social—his go-to digital megaphone—and let loose on Federal Reserve Chairman Jerome Powell. He didn’t just say Powell was late on rate cuts. He didn’t just say he was wrong. No, he went full throttle, calling the Fed’s latest report a “complete mess” and suggesting Powell’s “termination cannot come fast enough.” Oof. That’s not throwing shade—that’s launching a full solar eclipse.
Now, cue Senator Warren, who—brace yourself—also wants lower interest rates. Yep. Seven months ago, she literally told the Fed to cut rates by 75 basis points. So, you’d think she'd be nodding along with Trump here, right? Wrong.
ELIZABETH WARREN: "IF CHAIRMAN POWELL CAN BE FIRED BY THE PRESIDENT OF THE UNITED STATES, IT WILL CRASH THE MARKETS IN THE UNITED STATES." pic.twitter.com/tuKbsvijW6
— The Wolf Of All Streets (@scottmelker) April 17, 2025
Warren went on CNBC and hit the panic button. According to her, Trump’s threat to fire Powell isn’t just bad optics—it could “crash the markets.” Why? Because the Fed is supposed to be an independent agency, free from the political winds of whichever president happens to be tweeting that day (or Truthing, in Trump’s case).
Here’s the rub: the Fed chair can be fired by a president, but only “for cause.” And “I disagree with your rate policy” isn’t gonna cut it in a courtroom, folks. That standard goes all the way back to a 1935 Supreme Court ruling. So, when Trump huffs and puffs about booting Powell, Warren’s saying: careful, you’re playing Jenga with the global economy.
But wait, let’s zoom out a bit. Warren herself has been on Powell’s back, just from a different angle. She’s been pushing for cuts because she says high rates are making housing unaffordable. Totally fair point.
But now, with inflation easing and Europe eyeing cuts of their own, Trump’s saying Powell is dragging his feet. In a strange twist, Trump and Warren are kind of, sort of, on the same policy page—just not the same political planet.
And look, the idea that this whole monetary debate is happening in public view, across press conferences and social media feeds, is kind of bonkers. Because normally, interest rate decisions are made behind closed doors, based on reams of economic data—not Truth Social posts or Senate letters.