Trump on Powell: “No Plans to Fire Him”

On Tuesday, President Donald Trump made it clear he has no plans to remove Powell from his post—just a day after calling him a “major loser” and urging the central bank to cut rates more aggressively.

During a press briefing in the Oval Office, Trump dismissed the rumors, stating, “I never intended to— the press often runs wild with things.”

He reiterated his call for rate cuts, pointing out that interest rates remain high following the Fed’s recent hikes to combat inflation.

“This is the perfect time to cut interest rates,” the president said, adding that while it wouldn’t be catastrophic if it doesn’t happen, “it would be good timing.”

Harsh criticism last week

Last week, Trump took to social media to criticize Powell, calling him “always too late and wrong.” His comment that Powell’s “termination cannot come fast enough” sparked speculation over whether Trump might try to oust him before his term ends next year.

Powell, initially appointed by Trump in 2018 and later renominated by President Joe Biden, is set to remain in office through at least May 2026.

According to federal law, members of the Federal Reserve Board can only be removed “for cause.” However, the Trump administration has previously argued that similar rules should apply to other independent agencies—a position that could lead to a legal showdown.

National Economic Council Director Kevin Hassett stated the administration is “reviewing” whether it has the legal authority to fire Powell. Powell, for his part, has made it clear he will not step down if Trump asks him to.

The ongoing clash between the White House and the Federal Reserve could carry major economic consequences. While lower interest rates can boost growth and reduce borrowing costs, the risk of rising inflation remains in the background.

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