Trump Hints at Firing Fed Chair Powell Over Interest Rate Policy

In yet another sharp criticism on Federal Reserve Chairman Jerome Powell, U.S. President Donald Trump took to Truth Social on Friday to call out what he sees as a failure in leadership, even floating the idea of appointing himself as the next Fed chief. According to Anadolu Agency, while Powell’s term is set to end soon, Trump’s latest remarks add to growing speculation about how a second Trump administration could reshape monetary policy at its core.

Trump Blames Powell for Economic Strain

Trump’s criticism focused heavily on Powell’s refusal to cut interest rates despite growing calls for a looser monetary stance. The Federal Reserve decided on Wednesday to hold its benchmark interest rate steady between 4.25% and 4.50%, a move aligned with market expectations but one that Trump sees as damaging.

“Cutting interest rates to between 1% and 2% could save the U.S. up to $1 trillion per year,” Trump claimed, arguing that the current high-rate environment is slowing down economic momentum. He blamed Powell’s decisions for what he perceives as avoidable hardship in both the business and housing markets.

“A Dumb Guy… and an Obvious Trump Hater”

Trump didn’t hold back on personal attacks either. Calling Powell “a dumb guy” and “an obvious Trump hater,” the president questioned why the Federal Reserve Board hasn’t stepped in to override his decisions. Trump also criticized Joe Biden for reappointing Powell during his tenure, stating, “I don’t know why the Board doesn’t override this Total and Complete Moron!”

While such remarks are typical of Trump’s brash, confrontational style, they also highlight a serious policy divide between Trump and the current Fed leadership. His comments come amid a wider political debate on whether central banks should be more aggressive in stimulating economic growth during uncertain global conditions.

A Hint at Firing and a Wild Card Suggestion

“Maybe, just maybe, I’ll have to change my mind about firing him?” Trump teased, referencing his previous indecision about removing Powell during his first term. While the president technically cannot fire the Fed Chair without cause, Trump has long flirted with the idea of challenging that independence.

Perhaps most striking, however, was Trump’s half-joking suggestion that he might even appoint himself as the next Federal Reserve Chair. While constitutionally implausible, the statement underscores his desire to see tighter executive control over monetary policy, a move that could shake the very foundation of the Fed’s autonomy.

Central Bank Independence at Stake?

The Federal Reserve has long operated as an independent institution, shielded from direct political influence to preserve economic stability and credibility. Trump’s remarks, especially the suggestion of removing or replacing the Fed Chair based on political alignment, renew concerns among economists and analysts over potential threats to that independence.

Financial markets, so far, have not shown immediate reaction to the outburst, likely viewing the remarks as political theater rather than concrete policy direction. Still, with the 2024 election campaign heating up, Trump’s stance on the Fed could become a central issue in his economic agenda.

Conclusion: Serious Talk or Showmanship?

Trump’s latest tirade against Jerome Powell adds another chapter to an already tense relationship between the president and the Federal Reserve. While some of his remarks may be theatrical, the underlying message is clear: if re-elected, Trump could pursue an aggressive reshaping of America’s economic leadership—potentially starting with the nation’s most powerful central banker.