Trump says “maybe” he’ll try to fire Fed chief Jerome Powell

President Trump hinted on Friday that he may consider firing Federal Reserve Chair Jerome Powell, labeling him a “Total and Complete Moron” for keeping interest rates steady. The ongoing criticism from the president stems from his dissatisfaction with Powell’s handling of interest rates, with Mr. Trump advocating for faster rate cuts.

Despite the president’s vocal disapproval of Powell, it remains uncertain whether Trump has the authority to dismiss the central bank leader before his term concludes in May 2026. In a previous statement made in April, Trump stated that he had no intentions of removing Powell from his position. However, in a recent post on Truth Social, the former president suggested a potential change of heart, raising the possibility of Powell’s dismissal.

Any attempt to terminate Powell would undoubtedly lead to legal challenges. Federal law and past court rulings dictate that members of the Federal Reserve’s Board of Governors, including the chair, can only be removed “for cause.” The Supreme Court’s recent decision affirming the independence of the Fed further complicates Trump’s ability to remove Powell from office.

Powell, on the other hand, has expressed his commitment to staying in his position, even if asked to resign by Trump. The two recently met at the White House, where tensions between them were apparent. In response to Trump’s latest criticism, Powell has remained steadfast in his resolve to carry out the Fed’s monetary policies.

The crux of Trump’s criticism against Powell revolves around the Federal Reserve’s management of interest rates. Despite calls from the president for rate cuts to spur economic growth, the central bank has opted to maintain a steady course in response to inflation concerns. The decision to keep rates unchanged has drawn Trump’s ire, prompting him to label Powell as a “dumb guy” and a “Trump Hater.”

Trump’s discontent with Powell’s approach to interest rates reflects a fundamental disagreement on economic policy. While the president advocates for immediate rate cuts, Powell stresses the importance of a cautious strategy to prevent economic overheating and inflation spikes. The differing perspectives on monetary policy have fueled the ongoing feud between Trump and Powell, with the former accusing the latter of being out of touch with economic realities.

The current standoff between Trump and Powell echoes their previous clashes during the former president’s first term. Trump’s shifting stance on Powell, from criticism to reluctant acknowledgment of his actions, underscores the complex dynamics at play within the Federal Reserve and the broader economic landscape. As the dispute continues to unfold, the implications for US monetary policy and financial markets remain uncertain.