U.S. President Donald Trump again raised the idea on Friday of firing Federal Reserve Chairman Jerome Powell, a target of his long-standing frustration over interest rate policies he believes should be more lenient.
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“I don’t know why the Board doesn’t override (Powell),” Trump wrote in a detailed post on Truth Social. “Maybe, just maybe, I’ll have to change my mind about firing him? But regardless, his term ends shortly.”
Trump added, “I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering rates, but I’ve tried it all different ways.”
Historically, Fed chairs are protected from being removed by presidents except for misconduct, but Trump has repeatedly hinted at testing that boundary by threatening Powell’s dismissal.
Still, Trump often walks back his threats. “I’m not going to fire him,” he declared during a White House event on June 12.
The Fed kept interest rates unchanged on Wednesday within the 4.25%-4.50% range and predicted a slower economy, with expectations of higher unemployment and inflation by year-end.
Fed Governor Chris Waller, a name floated as a potential Powell replacement if Trump returns to office, said Friday that with inflation cooling and the job market softening, rate cuts could be on the table as early as July.
Yet Waller joined the unanimous decision on Wednesday to maintain current rates, showing that none of Powell’s fellow six board members or the five voting regional Fed bank presidents appear willing to override him. Fed decisions are usually made through consensus, and dissent is rare.
Trump campaigned partly on curbing inflation and introduced tariff increases while in office. Powell, aligning with economic experts, has maintained that those tariffs contributed to rising consumer costs.
Powell’s current term concludes in May 2026. A May Supreme Court ruling reduced speculation about Powell’s early dismissal, stating that the Federal Reserve is “a uniquely structured, quasi-private entity,” which complicates direct presidential control.
