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Trump “no intention to fire” Powell says he’ll be fed to cut rates

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Trump says Powell will remain the breeding committee chair until May 2026 as he continues to pressure the Federal Reserve to cut interest rates.

President Donald Trump said Tuesday there were no plans to fire Federal Reserve Chairman Jerome Powell as the president put pressure on the central bank to cut interest rates.

“I’m not going to fire him,” Trump said in the oval office on April 22, after the oval ceremony of new Securities and Exchange Commission Chairman Paul Atkins. “I hope he’ll be a little more proactive in terms of his idea of ​​lowering interest rates. This is the perfect time to cut interest rates.”

The statement showed a noticeable change in tone a few days after criticism. Just a day ago, Trump called Powell “Mr. Master” in a social media post, accusing him of keeping interest rates high and potentially slowing the US economy.

That post predates the market selling, with the Dow Jones industrial average dropping nearly 1,000 points before winning it all on Tuesday.

On April 17, Trump told reporters that Powell “can’t come quickly enough” and that he could remove the Fed’s chair “really fast” if he wanted.

By Tuesday, the president seemed to hold back his stance, but his complaints about Powell’s interest rate cuts remained.

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“(I want to see our chairman being early or on time, not recently,” Trump said of Powell and timing of future interest rate cuts. “Late isn’t good.”

The Fed’s main interest rate is currently in the target range of 4.25-4.50%, below the full point from its post-pandemic peak of 5.25-5.50%. The futures market expects central banks to stabilize May before cutting interest rates at its June meeting.

Trump has repeatedly said that inflation is currently under control and prices for energy, food and consumer goods are falling. He said interest rate cuts are now necessary to prevent the economy from slowing down.

Federal Reserve officials were pushed back. In a speech on April 16th at the Chicago Economic Club, Powell said he is waiting for the Fed to make it clearer about the economic impact of Trump’s sweeping tariff policies, including a 145% tax on Chinese goods and a 10% tariff on all imports. He warned that such trade measures could thwart growth while raising prices and complicate the Fed’s ability to meet the dual duties of price stability and full employment.

In his speech, Powell also said federal law cannot remove the chairs the president has seated for no reason. He said that the independence of the Federal Reserve is set in law and is widely supported by both parties to Congress.

Some administrations are reconsidering its legal framework. On April 18, White House economic adviser Kevin Hassett told reporters that the issue of Powell’s removal was under review. He also admitted to admitting past warnings depicted in the 2021 book.
Meanwhile, pending Supreme Court cases could restructure the president’s powers to remove staff from independent bodies. The lawsuit includes Trump’s previous efforts to dismiss appointees from the Federal Labor Commission, with some legal experts saying favorable rulings could extend to agencies like the Fed.

There is also growing speculation about anyone who could replace Powell when his term expires in May 2026. Treasury Secretary Scott Bescent said in a recent interview that the White House will begin searching for successors this fall.

Bessent raised the idea of ​​naming “Shadow Fed Chair” ahead of the transition, but he said Powell should be allowed to complete his term.

Andrew Moran contributed to this report.



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