Trump Lashes Out at Powell, Downplays Firing Possibility

U.S. President Donald Trump on Tuesday continued his verbal assault on the Federal Reserve and its chairman, Jerome Powell, but appeared to back away from earlier plans to potentially fire Powell.

Speaking to reporters at the White House, Trump stated, "I think he's done a terrible job, but he's going to be gone anyway pretty soon." He added, "Eight months and he'll be gone."

Trump's remarks come amid ongoing speculation about the security of Powell's position and with legal questions surrounding Trump's authority to remove the central bank chief.

Since appointing Powell to his first term, Trump has repeatedly criticized the Fed for being too cautious on cutting interest rates—even though the Fed lowered the benchmark rate a full percentage point before and around the late 2024 presidential election. Powell's term as chairman ends in May 2026.

Trump accused Powell of being politically motivated and gave him the nickname "Mr. Late," alluding to the tardiness of his interest rate adjustments.

"He's always late, he should have cut rates many times," Trump said. "People can't buy houses, because of this guy being a dummy. He keeps interest rates up too high, maybe for political reasons."

Fed Building Renovation Project Sparks Controversy

Beyond criticism of interest rate policy, the White House has also raised questions about the Fed's $2.5 billion project to renovate two office buildings in Washington. White House Deputy Chief of Staff James Blair posted on X Tuesday that government officials plan to tour the site on Thursday.

Earlier Tuesday, Treasury Secretary Steven Mnuchin said Powell "has always been a competent public servant," but he said at the White House that the Fed needs to "undertake a full internal review, not only of monetary policy, but of everything else. The Fed's mandate has expanded dramatically, and that's why there's been a big increase in spending."

On interest rates, Mnuchin supported the view that the Fed probably should have eased monetary policy amid the underlying slowdown in inflation.

"They spread panic about tariffs, and so far, we've seen almost no inflation," Mnuchin said. He reiterated Tuesday that the Fed should cut rates now.

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Important Note:

This analysis aims to provide information about current events related to the Federal Reserve and monetary policy, and is not intended to provide investment advice. Investors should consult with a qualified financial advisor before making any investment decisions.