Trump suggests he can remove Fed Chair Powell and says he's 'not happy' with him over interest rates

WASHINGTON (AP) — President Donald Trump attacked Federal Reserve Chair Jerome Powell on Thursday for not cutting interest rates and said he could fire him if he wanted to, renewing a threat from his first term that could cause a major legal showdown over the issue of the central bank's long-standing political independence.

“If I want him out, he’ll be out of there real fast, believe me," Trump said in the Oval Office while taking questions from reporters during a visit with Italian Prime Minister Giorgia Meloni. “I'm not happy with him.”

Trump's comments followed a posting on his social media site in which the Republican president called on Powell to lower the Fed's short-term interest rate and said, "Powell’s termination cannot come fast enough!” The Fed chair's term ends in May 2026.

Powell was initially nominated by Trump in 2017 and was appointed to another four-year term by Democratic President Joe Biden in 2022. At a November news conference, Powell indicated he would not step down if Trump asked him to resign and, in remarks Wednesday, made clear that “our independence is a matter of law.” He added: “We’re not removable except for cause. We serve very long terms, seemingly endless terms.”

Trump's criticism stems from his view that, as he said Thursday, “we have essentially no inflation." The Fed sharply raised rates in 2022 and 2023 to slow borrowing and spending and tame inflation, which dropped steadily from a peak of 9.1% in 2022 to 2.4% last month. Inflation is not far from the Fed's target of 2%. The Fed even cut rates three times at the end of last year.

But since then, Powell and most other Fed policymakers have underscored that they are keeping rates on hold because of the uncertainty created by Trump's sweeping tariffs, including a 10% tax on all imports and a 145% levy on imports from China.

In remarks Wednesday in Chicago, Powell reiterated that the Fed was waiting for greater clarity before making any moves and said the tariffs would likely worsen inflation.

Powell has steadfastly maintained that the Fed is independent from politics, a stance that Fed chairs have stressed since at least the 1970s. Back then, the Fed was widely seen as worsening a 15-year run of high inflation by giving in to demands from President Richard Nixon to keep interest rates low in the run-up to the 1972 election.

Economic research has suggested an independent central bank is more likely to keep inflation in check because it is more willing to do unpopular things, such as lift interest rates, to fight rising prices. Wall Street investors also largely prefer an independent Fed, though the stock market did not appear to react to Trump's comments.

Powell said Wednesday that the Fed will base its decisions solely on what's best for all Americans.

“That’s the only thing we’re ever going to do,” Powell said. “We’re never going to be influenced by any political pressure.”

He also suggested that the central bank will focus on fighting inflation in the wake of the tariffs, which would likely mean they would keep rates elevated.

Trump complained that interest rates are still rising “because we have a Federal Reserve chairman that is playing politics.” Yet longer-term rates rose after Trump announced his trade penalties.

Trump and members of his economic team have said they would like longer-term interest rates to fall, which would make it cheaper for Americans to borrow to buy homes, cars and appliances. Yet the Fed controls a short-term rate and can only indirectly affect longer-term borrowing costs.

A case before the Supreme Court could make it easier for a president to fire top officials, such as the Fed chair, at independent agencies. At issue are two Trump firings, which the justice have let stand while they consider the case.

Powell said he is watching the case closely but that it might not apply to the Fed, given that the court has in the past carved out exemptions for the central bank. Lawyers for the Trump administration, seeking to narrow the focus of the case, have also argued that it does not involve the Fed.

In a 2024 campaign interview with Bloomberg News, Trump said he would allow Powell to serve out his term as chair. Earlier this month, Trump's top economic adviser, Kevin Hassett, said in a television interview that “there's not going to be any political coercion over the Fed, for sure.”

Powell started Trump’s second term in a relatively secure spot with a low unemployment rate and inflation progressing closer to the Fed’s 2% target, conditions that could have spared him from the president’s criticism.

But Trump’s tariffs have increased the threat of a recession with higher inflationary pressures and slower growth, a tough spot for Powell, whose mandate is to stabilize prices and maximize employment. With the economy weakening because of Trump’s moves, the president appears to be looking to pin the blame on Powell.

On April 2, Trump rolled out increased tariff hikes based off U.S. trade deficits with other nations, causing a financial market backlash that almost immediately led him to announce a 90-day pause.

Wall Street banks such as Goldman Sachs have raised their odds that a recession could start. Consumers are increasingly pessimistic in surveys about their job prospects and fearful that inflation will shoot up as the cost of the import taxes get passed along to them.

The Budget Lab at Yale University estimated that the increased inflationary pressures from the tariffs would be equal to the loss of $4,900 in an average U.S. household.

Associated Press journalist Sagar Meghani contributed to this report.

President Donald Trump speaks as he meets with Italy's Prime Minister Giorgia Meloni in the Oval Office of the White House, Thursday, April 17, 2025, in Washington. (AP Photo/Alex Brandon)

President Donald Trump listens as he meets with Italy's Prime Minister Giorgia Meloni in the Oval Office of the White House, Thursday, April 17, 2025, in Washington. (AP Photo/Alex Brandon)

President Donald Trump speaks as he meets with Italy's Prime Minister Giorgia Meloni in the Oval Office of the White House, Thursday, April 17, 2025, in Washington. (AP Photo/Alex Brandon)

President Donald Trump listens as he meets with Italy's Prime Minister Giorgia Meloni in the Oval Office of the White House, Thursday, April 17, 2025, in Washington. (AP Photo/Alex Brandon)

FILE - President Donald Trump speaks to reporters as he signs executive orders in the White House, Feb. 4, 2025, in Washington. (AP Photo/Evan Vucci, File)

Chair of the Board of Governors of the Federal Reserve System Jerome Powell speaks during an event hosted by the Economic Club of Chicago, Wednesday, April 16, 2025, in Chicago. (AP Photo/Erin Hooley)

Chair of the Board of Governors of the Federal Reserve System Jerome Powell speaks during an event hosted by the Economic Club of Chicago, Wednesday, April 16, 2025, in Chicago. (AP Photo/Erin Hooley)

Chair of the Board of Governors of the Federal Reserve System Jerome Powell speaks during an event hosted by the Economic Club of Chicago, Wednesday, April 16, 2025, in Chicago. (AP Photo/Erin Hooley)

Chair of the Board of Governors of the Federal Reserve System Jerome Powell speaks during an event hosted by the Economic Club of Chicago, Wednesday, April 16, 2025, in Chicago. (AP Photo/Erin Hooley)

A group of Buddhist monks and their rescue dog are striding single file down country roads and highways across the South, captivating Americans nationwide and inspiring droves of locals to greet them along their route.

In their flowing saffron and ocher robes, the men are walking for peace. It's a meditative tradition more common in South Asian countries, and it's resonating now in the U.S., seemingly as a welcome respite from the conflict, trauma and politics dividing the nation.

Their journey began Oct. 26, 2025, at a Vietnamese Buddhist temple in Texas, and is scheduled to end in mid-February in Washington, D.C., where they will ask Congress to recognize Buddha’s day of birth and enlightenment as a federal holiday. Beyond promoting peace, their highest priority is connecting with people along the way.

“My hope is, when this walk ends, the people we met will continue practicing mindfulness and find peace,” said the Venerable Bhikkhu Pannakara, the group’s soft-spoken leader who is making the trek barefoot. He teaches about mindfulness, forgiveness and healing at every stop.

Preferring to sleep each night in tents pitched outdoors, the monks have been surprised to see their message transcend ideologies, drawing huge crowds into churchyards, city halls and town squares across six states. Documenting their journey on social media, they — and their dog, Aloka — have racked up millions of followers online. On Saturday, thousands thronged in Columbia, South Carolina, where the monks chanted on the steps of the State House and received a proclamation from the city's mayor, Daniel Rickenmann.

At their stop Thursday in Saluda, South Carolina, Audrie Pearce joined the crowd lining Main Street. She had driven four hours from her village of Little River, and teared up as Pannakara handed her a flower.

“There’s something traumatic and heart-wrenching happening in our country every day,” said Pearce, who describes herself as spiritual, but not religious. “I looked into their eyes and I saw peace. They’re putting their bodies through such physical torture and yet they radiate peace.”

Hailing from Theravada Buddhist monasteries across the globe, the 19 monks began their 2,300 mile (3,700 kilometer) trek at the Huong Dao Vipassana Bhavana Center in Fort Worth.

Their journey has not been without peril. On Nov. 19, as the monks were walking along U.S. Highway 90 near Dayton, Texas, their escort vehicle was hit by a distracted truck driver, injuring two monks. One of them lost his leg, reducing the group to 18.

This is Pannakara's first trek in the U.S., but he's walked across several South Asian countries, including a 112-day journey across India in 2022 where he first encountered Aloka, an Indian Pariah dog whose name means divine light in Sanskrit.

Then a stray, the dog followed him and other monks from Kolkata in eastern India all the way to the Nepal border. At one point, he fell critically ill and Pannakara scooped him up in his arms and cared for him until he recovered. Now, Aloka inspires him to keep going when he feels like giving up.

“I named him light because I want him to find the light of wisdom,” Pannakara said.

The monk's feet are now heavily bandaged because he's stepped on rocks, nails and glass along the way. His practice of mindfulness keeps him joyful despite the pain from these injuries, he said.

Still, traversing the southeast United States has presented unique challenges, and pounding pavement day after day has been brutal.

“In India, we can do shortcuts through paddy fields and farms, but we can’t do that here because there are a lot of private properties,” Pannakara said. “But what’s made it beautiful is how people have welcomed and hosted us in spite of not knowing who we are and what we believe.”

In Opelika, Alabama, the Rev. Patrick Hitchman-Craig hosted the monks on Christmas night at his United Methodist congregation.

He expected to see a small crowd, but about 1,000 people showed up, creating the feel of a block party. The monks seemed like the Magi, he said, appearing on Christ’s birthday.

“Anyone who is working for peace in the world in a way that is public and sacrificial is standing close to the heart of Jesus, whether or not they share our tradition,” said Hitchman-Craig. “I was blown away by the number of people and the diversity of who showed up.”

After their night on the church lawn, the monks arrived the next afternoon at the Collins Farm in Cusseta, Alabama. Judy Collins Allen, whose father and brother run the farm, said about 200 people came to meet the monks — the biggest gathering she’s ever witnessed there.

“There was a calm, warmth and sense of community among people who had not met each other before and that was so special,” she said.

Long Si Dong, a spokesperson for the Fort Worth temple, said the monks, when they arrive in Washington, plan to seek recognition of Vesak, the day which marks the birth and enlightenment of the Buddha, as a national holiday.

“Doing so would acknowledge Vesak as a day of reflection, compassion and unity for all people regardless of faith,” he said.

But Pannakara emphasized that their main goal is to help people achieve peace in their lives. The trek is also a separate endeavor from a $200 million campaign to build towering monuments on the temple’s 14-acre property to house the Buddha’s teachings engraved in stone, according to Dong.

The monks practice and teach Vipassana meditation, an ancient Indian technique taught by the Buddha himself as core for attaining enlightenment. It focuses on the mind-body connection — observing breath and physical sensations to understand reality, impermanence and suffering. Some of the monks, including Pannakara, walk barefoot to feel the ground directly and be present in the moment.

Pannakara has told the gathered crowds that they don't aim to convert people to Buddhism.

Brooke Schedneck, professor of religion at Rhodes College in Memphis, Tennessee, said the tradition of a peace walk in Theravada Buddhism began in the 1990s when the Venerable Maha Ghosananda, a Cambodian monk, led marches across war-torn areas riddled with landmines to foster national healing after civil war and genocide in his country.

“These walks really inspire people and inspire faith,” Schedneck said. “The core intention is to have others watch and be inspired, not so much through words, but through how they are willing to make this sacrifice by walking and being visible.”

On Thursday, Becki Gable drove nearly 400 miles (about 640 kilometers) from Cullman, Alabama, to catch up with them in Saluda. Raised Methodist, Gable said she wanted some release from the pain of losing her daughter and parents.

“I just felt in my heart that this would help me have peace,” she said. “Maybe I could move a little bit forward in my life.”

Gable says she has already taken one of Pannakara’s teachings to heart. She’s promised herself that each morning, as soon as she awakes, she’d take a piece of paper and write five words on it, just as the monk prescribed.

“Today is my peaceful day.”

Freelance photojournalist Allison Joyce contributed to this report.

Associated Press religion coverage receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.

Buddhist monks who are participating in the, "Walk For Peace," get lunch Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Aloka rests with Buddhist monks who are participating in the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

A sign is seen greeting the Buddhist monks who are participating in the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Supporters pray with Buddhist monks who are participating in the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Supporters watch Buddhist monks who are participating in the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

A Buddhist monk ties a prayer bracelet around the wrist of Josey Lee, 2-months-old, during the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Bhikkhu Pannakara, a spiritual leader, speaks to supporters during the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Buddhist monks participate in the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Buddhist monks participate in the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Bhikkhu Pannakara leads other buddhist monks in the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Audrie Pearce greets Buddhist monks who are participating in the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Bhikkhu Pannakara, a spiritual leader, speaks to supporters during the, "Walk For Peace," Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Buddhist monks who are participating in the, "Walk For Peace," arrive in Saluda, Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)

Buddhist monks who are participating in the, "Walk For Peace," are seen with their dog, Aloka, Thursday, Jan. 8, 2026, in Saluda, S.C. (AP Photo/Allison Joyce)