U.S. President Donald Trump has reignited criticism of Federal Reserve Chair Jerome Powell, once again suggesting he might fire him—despite earlier saying he wouldn’t. In a Truth Social post on Friday, Trump questioned why the Fed Board hasn't overridden Powell's decisions and floated the idea of removing him. “Maybe, just maybe, I’ll have to change my mind about firing him?” Trump wrote, adding that Powell’s term ends soon.
Trump has long pressured Powell to cut interest rates, blaming him for keeping borrowing costs too high. “I fully understand that my strong criticism makes it harder for him to lower rates, but I’ve tried every approach,” Trump said.
The Fed kept interest rates unchanged on Wednesday at 4.25%-4.50%, while projecting slower economic growth and rising unemployment. Despite calls for rate cuts, including from Fed Governor Chris Waller—a potential Trump nominee to replace Powell—the board unanimously agreed to hold rates steady. Fed decisions are typically based on consensus, with multiple dissents being rare.
Trump’s threats to fire Powell have tested legal boundaries, as Fed chairs are traditionally protected from dismissal without misconduct. A recent Supreme Court decision reinforced the Fed’s unique structure, calming fears over presidential interference.
With Powell’s term ending in May 2026, speculation grows that Trump, if re-elected, may nominate a successor. Trump’s push for lower rates aligns with his broader economic stance, including imposing tariffs that Powell has said contribute to inflation.
Trump’s renewed criticism underscores ongoing political tensions around Fed independence and monetary policy as the 2024 election looms. While no immediate action is expected, the future of U.S. central bank leadership remains a key issue to watch.