U.S. President Trump Critiques Fed Chair Jerome Powell

By Trevor Hunnicutt and Jasper Ward

WASHINGTON (Reuters) – U.S. President Donald Trump on Friday again floated the idea of firing Jerome Powell, the Federal Reserve chair he has long criticized over interest rates he wishes to lower.

“I don’t know why the Board doesn’t override (Powell),” Trump wrote in a lengthy post on Truth Social directly criticizing Fed policy. “Maybe, just maybe, I’ll have to change my mind about firing him? But regardless, his term ends shortly.”

Trump acknowledged, “I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering rates, but I’ve tried it all different ways.”

Traditionally, Fed chairs are viewed as insulated from presidential dismissal unless for misconduct. However, Trump has threatened to challenge this notion with repeated threats to fire Powell.

Frequently, Trump reverses his threats; on June 12, he denied intentions to fire Powell. The Fed maintained rates on Wednesday in the 4.25%-4.50% range, projecting slower growth, heightened unemployment, and inflation by year’s end.

Fed Governor Chris Waller, rumored as a potential Trump replacement for Powell, suggested on Friday that with inflation decreasing and signs of labor market weakness, rate reductions should be considered as early as July.

Yet, Waller aligned with the unanimous Fed decision to keep rates steady on Wednesday, indicating no current desire among Powell’s six fellow Board members or the five regional Fed bank presidents to override him. Fed decisions typically require consensus, making significant dissent uncommon.

Trump, elected in part due to voters’ faith in his capacity to control inflation, has imposed tariff increases during his term. Powell has indicated that such tariff hikes could lead to increased consumer prices, aligning with broader academic consensus.

Powell’s term concludes in May 2026, and Trump is expected to nominate a successor soon. A Supreme Court ruling in May alleviated worries regarding Trump’s ability to dismiss Powell, as justices characterized the Fed as “a uniquely structured, quasi-private entity.”