Trump Rules Out Firing Powell Despite Rate Cut Frustration

President Donald Trump has stated that he has no intention of removing Federal Reserve Chair Jerome Powell from his position, despite his growing dissatisfaction with the central bank's slow pace of interest rate reductions. Trump made these remarks during a White House event, where he questioned the potential controversy surrounding such a move. "I’m not going to fire him," Trump said, adding, "The fake news is saying, ‘Oh, if you fired him, it would be so bad.’ I don’t know why it would be so bad."

Trump has frequently criticized Powell for not lowering interest rates quickly enough, referring to him as “Too Late” and attributing the current rate environment to increased federal borrowing costs. Powell's term as Fed chair is scheduled to end in May 2026. Trump also hinted that he might exert pressure on the Fed if rate cuts do not occur soon, stating, "We’re going out to financing, and I may have to force something." He also mentioned that he is not opposed to rate hikes if inflation rises, but believes that now is the time to ease monetary policy.

Trump also suggested that a decision on his nominee for the next Fed chair could be announced soon, following earlier comments that an announcement was imminent. Despite his sharp criticism, Trump stopped short of saying he would replace Powell, calling him a “numbskull” but reiterating, "I’m not going to fire him."

Trump also expressed concern about rising oil prices, highlighting broader economic pressures as he enters the final months of his re-election campaign. The president's comments come at a time when the economy is facing various challenges, including trade tensions and slowing growth. Trump's remarks on the Fed and interest rates reflect his ongoing efforts to influence monetary policy, which he believes could boost economic growth and support his re-election bid.

Trump's decision not to fire Powell, despite his frustration with the Fed's policies, suggests that he may be seeking to avoid a potential political backlash. Firing the Fed chair could be seen as an attempt to politicize the central bank, which is supposed to be independent of political influence. Trump's comments also highlight the ongoing tension between the White House and the Fed, as the president continues to push for lower interest rates to support economic growth.

Trump's remarks on the Fed and interest rates come as the central bank is facing increasing pressure to adjust its policies in response to changing economic conditions. The Fed has been under scrutiny for its handling of monetary policy, with some critics arguing that it has been too slow to respond to economic challenges. Trump's comments suggest that he may be seeking to exert pressure on the Fed to act more quickly, as he believes that lower interest rates could help boost economic growth and support his re-election bid.