President Donald Trump on Wednesday intensified his criticism of the Federal Reserve (Fed) and stated that he would love to fire Jerome Powell, whom he reproached during his second term for not lowering interest rates more quickly.
Key data
“To be honest, I would love to fire him,” Trump said of Powell, whose term as Federal Reserve chair ends in May 2026.
Trump, speaking during a Saudi-backed investment forum, urged Treasury Secretary Scott Bessent to find a successor to Powell, adding: “You’ve got to work on it, Scott. The only thing Scott is screwing up is the Federal Reserve.”
Interest rates are “too high,” Trump said, suggesting that if Bessent — whom Trump referred to as a “voice of reason” — can’t “fix it quickly, I’m going to fire him.”
Crucial ideals
“I love my job at the Federal Reserve,” Trump said, adding, “To me, it’s the easiest job in the world. You play golf for 28 or 29 days and then you give a speech.”
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Who could replace Powell as Federal Reserve chair?
On Tuesday, Trump told reporters that he believes he has chosen Powell’s successor and would prefer to replace him as Fed chair, “but they’re holding me back.” Bessent, who in July said a “formal process” had begun to find Powell’s successor, confirmed in October that the list of candidates had been narrowed to five: Fed governors Christopher Waller and Michelle Bowman, National Economic Council director Kevin Hassett, former Federal Reserve governor Kevin Warsh and BlackRock executive Rick Rieder.
Key context
Trump and Powell have had differences for months, although Trump had previously stated that he would not remove Powell from his position as head of the Federal Reserve. Trump, who appointed Powell to the position in 2017, reportedly discussed the possibility of removing him in 2018, but later stated that he “never suggested” his removal and did not “believe he had the right to do so.”
Trump criticized Powell for coming “too late” to lower interest rates, even as the Fed cut them by a total of 50 basis points, putting them between 3.75 and 4% so far this year.
Wall Street believes the Fed is unlikely to cut rates again in its final policy session in December, with a 35% chance of a 25 basis point reduction, according to CME’s FedWatch tool.
This probability was as high as 90% in October, but has since declined as more Fed officials, including Powell, have expressed caution about lowering rates. However, Fed Governor Stephen Miran, appointed by Trump earlier this year, has advocated for steeper cuts.
This article was originally published in Forbes US
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