President Trump said Tuesday he has no intention of firing Federal Reserve Chair Jerome Powell, after he has escalated his criticism over the independent agency’s decision to not lower interest rates.
“The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates,” Trump said, adding that he “never did” have an intention to dismiss Powell.
“If it doesn’t, is it the end? No, it’s not. But it would be good timing,” he added. “But no, I have no intention to fire him.”
Trump called Powell a “major loser” Monday and suggested the Fed’s previous rate cuts were aimed at helping former President Biden, fueling investor concerns in recent days.
A 90-year-old Supreme Court precedent likely protects Powell from being fired by the president for anything other than misconduct or severe neglect of office. Powell has repeatedly insisted he cannot legally be fired and would refuse to leave until the end of his term in 2026.
The White House earlier Tuesday defended Trump’s criticism of Powell, saying he has the “right to express his displeasure with the Fed.” Powell has drawn Trump’s ire with his analysis that tariffs could cause economic growth to stall while inflation increases — which would likely keep the Fed from being able to lower rates.
Trump last week said he couldn’t wait for the Fed chair’s “termination” and insisted Powell would leave if he attempted to fire him. Kevin Hassett, chair of the White House National Economic Council, said Friday that the White House is exploring how to fire Powell.