Trump: May Replace Powell in 2026, Not Ruling Out Recession

In a recent statement, former U.S. President Donald Trump addressed the possibility of removing Federal Reserve Chairman Jerome Powell from his position before 2026. When questioned about this, Trump provided his most definitive response to date, stating, "No, no, no. Why would I do that? I can wait, I mean, it's not that far away. I can do it sooner if I want to." This response suggests that while Trump is not ruling out the possibility of replacing Powell, he is indicating that he is willing to wait until the end of Powell's term in 2026.

Trump also addressed concerns about the potential for an economic recession. He described the current economic situation as a transition period and expressed that he is not worried about the economy shrinking during his tenure. However, he did not completely rule out the possibility of a recession. When asked about the impact of his tariff policies on the economy, Trump stated that he would ultimately take responsibility for everything.

This statement from Trump comes at a time when the U.S. economy is facing various challenges, including inflation and supply chain disruptions. The Federal Reserve, under Powell's leadership, has been implementing policies to address these issues, including raising interest rates. Trump's comments suggest that he is aware of the economic challenges but is confident in his ability to navigate them.

Trump's willingness to wait until 2026 to potentially replace Powell indicates that he is not looking to make immediate changes to the Federal Reserve's leadership. This could be seen as a sign of stability for the Federal Reserve, as Powell's term is set to continue until 2026. However, Trump's statement that he could replace Powell sooner if he wants to leaves open the possibility of changes in the future.

Overall, Trump's comments provide insight into his views on the U.S. economy and the Federal Reserve's leadership. While he is not ruling out the possibility of replacing Powell, he is indicating that he is willing to wait until the end of Powell's term. Trump's confidence in his ability to navigate the economic challenges facing the U.S. suggests that he is not overly concerned about the potential for a recession.