Former U.S. President Donald Trump has revived his longstanding criticism of Federal Reserve Chair Jerome Powell, suggesting on Friday that he might reconsider firing him if the central bank continues to resist lowering interest rates.
In a Truth Social post, Trump asked, “Maybe, just maybe, I’ll have to change my mind about firing him?” while also noting, “his Term ends shortly.”
Trump’s comments came just days after the Fed opted to keep its benchmark interest rate unchanged between 4.25% and 4.50%, despite signs of economic slowdown.
Tensions Between Trump and Fed Continue
This is not the first time Trump has targeted Powell over interest rate policies he believes are too tight for the current economic climate.
He acknowledged that his strong public opposition may be complicating Powell’s decisions, writing, “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.”
While U.S. law protects Fed chairs from removal without cause, Trump has repeatedly tested the boundaries of that principle.
During his presidency, he frequently floated the idea of firing Powell, only to walk back those threats.
At one point, in June 2019, Trump explicitly said, “I’m not going to fire him.”
Fed Faces Economic Crossroads
The Federal Reserve’s decision this week to hold rates steady reflects its cautious approach to inflation, economic growth, and unemployment forecasts.
Despite growing political pressure, including from figures aligned with Trump, the central bank has not indicated any internal dissent over its current policy path.
Fed decisions are made by consensus, and it’s rare to see more than one or two dissents on key votes.
Even Chris Waller, a Fed Governor viewed as a potential Trump nominee for the chair position, supported the latest decision to leave rates unchanged.
Still, Waller hinted on Friday that rate cuts could be appropriate as early as July, citing softening inflation and signs of weakness in the labor market.
Powell’s Future Uncertain Amid Political Turmoil
Powell’s current term as Fed Chair is set to end in May 2026.
However, with Trump expected to announce key appointments in the coming months, speculation is growing around who might succeed Powell if the administration changes.
The Supreme Court recently weighed in on the Fed’s status, describing it as a “uniquely structured, quasi-private entity,” which may limit a president’s ability to dismiss its leaders unilaterally.
Still, Trump’s persistent threats, along with his history of tariff policies and economic intervention, suggest that the Fed’s leadership could become a political flashpoint again if he returns to office.