Trump criticized Federal Reserve Chair Jerome Powell and denied any plans to remove him from his position; collaboration with Elon Musk on an automated employee layoff system sparked controversy involving 260,000 federal employees.

Taiwan • Politics • 05/08 14:01
Trump criticized Federal Reserve Chair Jerome Powell and denied any plans to remove him from his position; collaboration with Elon Musk on an automated employee layoff system sparked controversy involving 260,000 federal employees.

On May 8, 2025, President Trump of the United States criticized Federal Reserve Chair Powell for not cutting interest rates, calling him a "dummy," but denied any plans to remove him from his position. The Trump administration, in partnership with Elon Musk, launched an automated layoff system, leading to 260,000 federal employees either resigning or being laid off, sparking controversy and legal challenges. This system was tested in the Department of Veterans Affairs and the IRS, saving $160 billion in the budget, but faced lawsuits from multiple state attorneys general and labor unions questioning its legality.

Key Updates

23h ago

President Trump of the United States Launches 2025 Trade Negotiations: with Taiwan, Japan, and South Korea Involved, US-China Tariff Talks Show Progress

In May 2025, the Trump administration initiated a new round of trade negotiations, planning to conduct bilateral talks with about 20 countries, including Taiwan, Japan, and South Korea, with the goal of achieving preliminary results by the end of the year. The negotiations involve both major economies and smaller trade partners, aiming to create a model for future trade agreements. Trump is also considering lowering the punitive tariffs, which are as high as 145%, on China, suggesting there may be room for negotiation in the US-China trade war. Senior US and Chinese officials held talks in Geneva on May 10, marking the first significant trade talks since Trump assumed office.

05/10 02:00

Trump criticized U.S. Federal Reserve Chair Jerome Powell for his conservative policies and is considering nominating Walsh to succeed him.

On May 10, 2025, former President of the United States, Trump, criticized Federal Reserve Chair Powell for his conservative approach to interest rate policy, calling him "behind the times" and suggesting that if he were to return to the White House, he would consider nominating former Federal Reserve Governor Walsh to take over as chair. Walsh has recently criticized Federal Reserve policies in public, opposing the idea of "sacrificing jobs to control inflation." This potential personnel change has drawn attention to the future direction of the Federal Reserve.

05/10 02:00

The Trump administration launches new trade negotiations: 20 countries' tariff strategies, divergence in Fed's inflation policy, and Mexico's lawsuit against Google

In May 2025, the Trump Administration initiated a new round of trade negotiations, focusing on approximately 20 economies and establishing a 10% minimum tariff floor. U.S.-China relations are still stuck in a high-tariff stalemate, with both parties set to meet in Geneva. The Federal Reserve is experiencing a division over inflation control strategies, with Chairman Powell emphasizing the importance of observing economic trends before making any decisions. Mexico sued Google for labeling the "Gulf of Mexico" as the "American Gulf" on Google Maps, alleging it of ignoring multiple requests and causing diplomatic tensions following a U.S. congressional resolution.

05/09 23:29

On the eve of US-China trade talks, Trump proposes an 80% tariff reduction, while the White House insists on concessions from both sides.

Senior officials from the US and China will meet in Geneva, Switzerland, from May 10 to 11 to discuss tariffs, rare earth export restrictions, and issues related to fentanyl. President Trump proposed reducing tariffs on Chinese goods from as high as 145% to 80%, but the White House emphasized that tariffs will not be lowered unilaterally unless China makes concessions. The talks will be led by US Treasury Secretary Mnuchin and Chinese Vice Premier He Lifeng. Meanwhile, the US and the UK have reached a limited trade agreement, maintaining a 10% baseline tariff, highlighting the Trump administration's push for reciprocal tariff policies.

05/09 22:00

Federal Reserve Board Member Waller Defends the Federal Reserve's Independence: Trump's Criticism Sparks Concerns, Supreme Court to Review Case on Presidential Dismissal Powers

On May 9, 2025, Federal Reserve Governor Christopher Waller emphasized the importance of the Fed's independence for economic stability at the Hoover Institution at Stanford University. Meanwhile, former President Trump had repeatedly criticized the Fed and Chairman Powell, sparking concerns over political interference. The U.S. Supreme Court is currently hearing a case regarding the president's ability to dismiss officials from independent agencies, which could affect the Fed's institutional framework.

05/08 18:00

President Donald Trump announced that the United States and United Kingdom have reached an agreement on a 10% baseline tariff, and countries that have trade surpluses will face higher tariffs.

On May 8, 2025, President Trump of the United States announced at the White House that he had reached a trade agreement with the United Kingdom, establishing a 10% baseline tariff that covers sectors like automobiles, steel and aluminum, and agriculture. The UK secured a preferential 10% tax rate, but Trump warned that countries with trade surpluses would face higher tariffs. This policy marks a shift in U.S. trade policy, signaling a clear change to global trade partners.

05/08 14:01

Trump criticized Federal Reserve Chair Jerome Powell and denied any plans to remove him from his position; collaboration with Elon Musk on an automated employee layoff system sparked controversy involving 260,000 federal employees.

On May 8, 2025, President Trump of the United States criticized Federal Reserve Chair Powell for not cutting interest rates, calling him a "dummy," but denied any plans to remove him from his position. The Trump administration, in partnership with Elon Musk, launched an automated layoff system, leading to 260,000 federal employees either resigning or being laid off, sparking controversy and legal challenges. This system was tested in the Department of Veterans Affairs and the IRS, saving $160 billion in the budget, but faced lawsuits from multiple state attorneys general and labor unions questioning its legality.

05/08 06:00

The U.S. White House plans to set up a sovereign wealth fund, with the Treasury and Commerce Departments submitting a draft plan.

On May 8, 2025, a White House spokesperson confirmed that the U.S. Department of the Treasury and the Department of Commerce, following President Trump's directive, are drafting preliminary plans to establish a sovereign wealth fund. The aim is to enhance the economy and security by liquidating government assets and utilizing tariff revenues. Although the plan is not finalized, the policy has sparked discussions in Washington D.C., becoming central to the Trump administration's economic strategy. The White House has expressed reservations about certain aspects of the draft, and the sources of funding and the fund's structure are still being deliberated.

05/08 03:04

President Trump of the United States announced that a global tariff policy will be developed within two weeks, and the initial trade agreement will soon be unveiled.

On May 6, 2025, President Trump of the United States announced that he would meet with senior cabinet members within two weeks to discuss specific tariff rates on imported goods from various countries, emphasizing that the United States would take the lead in setting tariffs. Trump announced that on May 8, he would reveal at the White House the first country to reach a tariff agreement with the United States, with speculation that it might be India. The Trump administration continues to impose a high tariff of 145% on China and has set import tariffs on chips ranging from 10% to 25%.

05/08 02:32

U.S. President Trump announced the first-ever U.S.-India trade agreement: India has agreed to eliminate tariffs on U.S. goods.

On May 8, 2025, President Trump announced from the White House that the United States reached its first tariff agreement with India, where India agreed to eliminate import tariffs on American goods. The agreement covers steel, auto parts, and pharmaceuticals, and is based on the principle of reciprocity, allowing the U.S. to export specific products to India without tariffs. This marks the first concrete agreement since the Trump administration initiated its new tariff policy on April 2, signifying a major turning point in U.S.-India trade relations.

Trump Again Calls Powell an "Idiot": Not Cutting Rates is a Mistake

After the Federal Reserve (Fed) announced on May 7 that it would maintain the benchmark interest rate between 4.25% and 4.5%, Trump took to Truth Social the next day to criticize Fed Chairman Powell as a "slowpoke idiot," accusing him of failing to see the current economic situation. He emphasized that U.S. prices have significantly fallen, energy and grocery prices are down, inflation is almost nonexistent, and tariff revenues are flowing into America's coffers. Trump argued that the Fed should immediately cut rates to align with his economic policies.

Trump wrote: "Oil and energy prices have plummeted, almost all costs (including groceries and 'eggs') are down, there's almost no inflation, and tariff revenues are flowing into America's coffers—this 'slowpoke idiot' is completely baseless."

This is not the first time Trump has targeted Powell. Since his tenure, Trump has repeatedly criticized Powell's monetary policy, believing his actions are too conservative and fail to align with his tariff and economic stimulus policies. Nonetheless, Powell reiterated the Fed's independence at a press conference, stating that decisions will be based on economic data and risk assessments, free from political interference.

Denies Replacing Powell: Trump Says "Can Replace Him Soon"

Speculation about whether Trump would prematurely remove Powell from his position has been mounting, especially after his repeated public criticisms, causing market fluctuations. However, in an interview with NBC's "Meet the Press," Trump denied any intention to fire Powell, stating: "No, no, no... Why would I do that? I can replace him soon." He added that Powell is a "completely inflexible person."

Powell's term will expire in May 2026, and if Trump successfully wins re-election, he will have the authority to reappoint the Fed Chairman. Trump's preferred successors include former Fed Governor Kevin Warsh and current Governor Christopher Waller, both of whom have publicly criticized current monetary policy and advocated for reforming the Fed's operations.

Musk Oversees Automated Layoff System: AutoRIF Launched

Meanwhile, the Trump administration's federal government "streamlining" plan has entered a new phase. Led by Musk, the "Department of Government Efficiency" (DOGE) has launched an automated layoff system called the "Workforce Restructuring Tool," aimed at accelerating the elimination of tens of thousands of federal positions.

The system is based on the "AutoRIF" platform developed by the Pentagon years ago and has undergone significant upgrades to quickly analyze employee tenure, veteran status, and performance, automatically selecting candidates for layoffs. Reportedly, the tool has been tested in large agencies like the Department of Veterans Affairs (VA) and the Internal Revenue Service (IRS), with the VA planning to cut 80,000 employees and the IRS aiming to reduce its workforce by 40%.

260,000 Resign or Are Laid Off: Trump's Restructuring Sparks Controversy

Since Trump returned to the White House in January 2025, approximately 260,000 federal employees have left government departments through voluntary resignation, early retirement, or direct layoffs. DOGE claims these measures have saved the government over $160 billion in budget. However, the layoffs have sparked widespread controversy and legal challenges.

Several federal agencies, such as the United States Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB), have seen significant reductions in functionality, with some social programs canceled. Multiple state attorneys general and federal employee unions have filed lawsuits against DOGE, questioning its violation of civil service protection statutes and privacy laws. DOGE has also been hit with a preliminary injunction for attempting to access sensitive data from the Social Security Administration.

Additionally, the Trump administration has closed several Diversity, Equity, and Inclusion (DEI) offices through executive orders and implemented large-scale dismissals of new employees, bypassing federal personnel protection mechanisms. According to internal memos, about 200,000 employees on probation have been prioritized for layoffs.

Musk's Role Limited but Layoff Plan Continues

Although Musk is the founding director of DOGE, legal regulations limit his "special government employee" status to no more than 130 days of government work per year. As the deadline approaches, Musk has announced his withdrawal from DOGE, returning to Tesla and other tech ventures. However, the advancement of the layoff system has not been interrupted and continues to expand with the support of Republican congressmen.

There has also been strong social backlash. Protests have erupted nationwide, with demonstrators criticizing Musk for wielding too much power without being elected and holding signs reading "No Kings in America." Some protests have even escalated into violent actions against Tesla facilities, which the Trump administration has labeled as "domestic terrorism."

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