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The Supreme Court is considering an emergency petition from President Donald Trump that could imperil the Federal Reserve’s ability to remain independent. And earlier today, President Donald Trump warned the US economy may slow if the Federal Reserve does not move to immediately reduce interest rates, in his latest broadside against Fed Chair Jerome Powell.

Trump said in a social media post Monday that “there is virtually No Inflation,” pointing to lower energy and food prices. “But there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump said, referring to Powell.

Economists widely expect Trump’s tariffs to boost inflation and slow growth, even if just temporarily. While inflation has cooled notably in recent years, it remains elevated. Powell, along with several of his colleagues, has underscored the central bank must ensure new levies don’t lead to a more persistent bout of inflation.

Trump has rattled Wall Street by repeatedly criticizing Powell and suggesting he had the ability to remove the Fed Chair before the end of his term. US equities sank on Monday as traders weighed the chances Powell gets axed, with the S&P 500 Index falling more than 3%.

Trump has privately asked his advisers about the possibility of removing Powell, while some administration officials have warned him against doing so, according to people familiar with the matter. National Economic Council Director Kevin Hassett on Friday told reporters that the president was studying the question of whether he’s able to fire Powell.

While the US economy grew at a healthy clip last year — at a 2.4% pace in the fourth quarter — economists see a tariff-induced drop in business investment and consumption driving a slowdown later this year. Meanwhile, progress on cooling inflation back to the Fed’s 2% target had stalled, but price growth slowed again in March, with the consumer price index rising 2.4% from a year earlier.

Today’s show features:

Lev Menand, associate professor of law at Columbia Law School on his latest Bloomberg Opinion column How Supreme Court Could Imperil Fed Independence: Judge & Menand & Bloomberg News Economics Editor Molly Smith
Bloomberg Economics US Economist Stuart Paul & Bloomberg News Global Economy Reporter Enda Curran on the global economic outlook with IMF spring meetings ahead
Bloomberg Businessweek columnist and Elon Inc podcast cohost Max Chafkin on his Big Take: Trump’s Agenda Is Shaped by Project 2025 Author, Not Elon Musk
And we Drive to the Close with Jeff McClean, CEO of Solidarity Wealth

Hosts: Carol Massar and Tim Stenovec

Producer: Justin Milliner

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How the Supreme Court Could Imperil Fed Independence

Bloomberg Businessweek