President Trump told reporters “I have no intention of firing” Federal Reserve Chair Jerome Powell even though he wants the policymaker to lower interest rates, making the comment less than a week after Trump asserted on social media that “Powell’s termination cannot come fast enough.”
Trump said he “never did” have the intention of removing Powell, whose term as chair expires in May 2026.
“The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates.”
Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments
Tuesday’s comment from the president marks a deescalation in a bevy of attacks on Powell after the policymaker said last week that the president’s tariffs would lead to higher inflation and lower growth and that the Fed would hold rates steady for now.
Trump on Friday told reporters, “I’m not happy with him. I let him know it, and if I want him out, he’ll be out of there real fast, believe me.”
White House economic adviser Kevin Hassett even said Friday that Trump and his team are studying whether they can remove the Fed chair.
On Monday, the president again turned up the pressure by calling Powell a “major loser” in another post expressing his frustration that rates had not been lowered.
“There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” the president posted on his social media website Truth Social Monday morning, saying that “‘Preemptive Cuts’ in Interest Rates are being called for by many.”
There was some pushback to Trump’s comments last weekend about Powell, with Republican Sen. John Kennedy saying, “I don’t think the president, any president, has the right to remove the Federal Reserve chair” and adding that he thinks the Fed ought to be independent.
The stock market also fell on Monday, another sign that investors were not supportive of the idea.
Powell has repeatedly said that he can’t be removed by law and intends to serve through the end of his term as chair in May 2026.
There is a case now before the Supreme Court that is testing Trump’s ability to remove board members at independent agencies in Washington, D.C., a case that some Fed watchers worry could threaten Powell if the administration wins.
But Powell said last week, “I don’t think that’s a case that will apply to the Fed.” Nonetheless, the central bank is “monitoring it carefully.”
