‘Maybe I'll change my mind about firing him': Trump revives threat to fire Fed Chair Jerome Powell; calls him ‘total and complete moron'
Donald Trump revives threat to fire Fed Chair Jerome Powell (Picture credit: AP)
US President Donald Trump on Friday again floated the possibility of firing Federal Reserve Chair Jerome Powell, reigniting a long-standing feud over interest rates he claims should be much lower.
In a scathing post on Truth Social, Trump called Powell a 'numbskull' and a 'total and complete moron,' blaming him for refusing to reduce rates despite what Trump called 'virtually no inflation' in the economy.
'I don't know why the Board doesn't override this Total and Complete Moron! Maybe, just maybe, I'll have to change my mind about firing him?' Trump wrote. 'But regardless, his Term ends shortly,' Trump added.
Powell's current term ends in May 2026.
Trump's renewed criticism came just days after the Federal Reserve decided to hold interest rates steady at 4.25%–4.50%. Powell, backed by all six board members and five regional bank presidents, cited the need for patience as inflation trends slowly downward.
Trump, however, insists rates should be slashed to between 1% and 2%, claiming such a move could save the country up to $1 trillion annually.
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'I've tried it all different ways. I've been nice, I've been neutral, and I've been nasty, and nice and neutral didn't work!' Trump added.
As per The Hill, Powell has previously stated that a sitting US president cannot lawfully remove a Fed chair except for cause, such as misconduct. A recent Supreme Court ruling also reinforced the Fed's unique structure as a quasi-independent entity, limiting Trump's ability to dismiss Powell directly.
Trump's renewed focus on the Fed comes at a time when Fed Governor Christopher Waller, considered a top contender for Powell's successor, suggested that rate cuts could be on the table by July, citing cooling inflation and signs of a weakening labour market.
Nonetheless, Waller joined the unanimous decision to keep rates on hold this week.
Adding to the speculation, Trump is reportedly preparing to announce a nominee to replace Powell, potentially well before the end of his term.
Market analysts have warned that such an early move could create instability by introducing a 'shadow chair' dynamic, where the sitting chair and the president's nominee pull policy in conflicting directions.
Names circulating as potential replacements include Fed Governor Waller, former Fed Governor Kevin Warsh, former Trump nominee Judy Shelton, and White House economic adviser Kevin Hassett. However, any new Fed chair must be confirmed by the US Senate, a process that could take months.
Market strategists caution that the perception of a politically influenced appointment could erode confidence in the Fed's independence. 'Any Wall Street manager would tell you that Fed independence is the golden rule of markets,' said Callie Cox of Ritholtz Wealth Management.
Despite the firestorm, Powell remains firm. In a previous statement, he said he would not step down if asked and reiterated that Fed decisions are grounded in economic data, not political pressure.
Meanwhile, Trump's intensifying rhetoric and tariff plans continue to inject uncertainty into the central bank's outlook for the second half of 2025.
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