The Fed charmain just said inflation will pick up. When the economy starts to tank Trump will need somebody to blame, and will blame the high interest rates. The Fed might even have the need to raise rates.
[1] "...The relevant legislation holds that a member of the Federal Reserve board may be “removed for cause by the president”. But in this context, courts have interpreted “for cause” to refer to misconduct or impropriety. The president cannot remove the members of the board purely for policy or political reasons.
However, Trump could attempt to demote Powell from chair to an ordinary member of the Federal Reserve, and put another candidate in charge. Here, there is less of a legal precedent. Previous presidents have always assumed they did not have the power to do this..."
The inflation is a desired and intended side effect of the tariffs, the statement by Powell is part of a chess match and his removal will be part of an intended outcome.
Trump will try to replace Powell extra-constitutionally and at this point, I suspect he may succeed. It will be close to the lights going out at that point.
[1] "...The relevant legislation holds that a member of the Federal Reserve board may be “removed for cause by the president”. But in this context, courts have interpreted “for cause” to refer to misconduct or impropriety. The president cannot remove the members of the board purely for policy or political reasons.
However, Trump could attempt to demote Powell from chair to an ordinary member of the Federal Reserve, and put another candidate in charge. Here, there is less of a legal precedent. Previous presidents have always assumed they did not have the power to do this..."
[1] https://theconversation.com/trump-has-threatened-to-fire-the...