In recent weeks, President Trump has faced scrutiny over the future of Federal Reserve Chairman Jerome Powell, but on Friday he indicated it’s unlikely he will remove him anytime soon.
During an interview with Rob Finnerty from Newsmax, Trump stated that he probably wouldn’t fire Powell before his term ends in May 2026, despite his dissatisfaction with the Fed’s decision to maintain high interest rates.
“Interest rates are too high. Still, we’ve got a strong economy,” Trump commented.
When questioned about Powell’s position, he responded, “If you fire him, it can be very damaging. So I’d probably say he will stay.”
Trump also urged Powell to address various criticisms from his tenure, including his handling of the funds for renovations at the Federal Reserve’s Washington office. “I could get rid of him in a heartbeat, but I’m told it would upset the market,” he said. “The renovation isn’t that complicated. I know a lot about construction.”
He mentioned that the budget for this project was excessively high, implying Powell was creating “a palace” for himself, and noted that Powell wouldn’t be around for long. “He won’t even be able to use it,” Trump added.
Last week, during a visit to the Federal Reserve, Powell confirmed the renovation project is on schedule. Trump’s remarks came alongside the White House’s announcement of a $200 million initiative to revitalize the ballroom.
On Friday, Trump suggested that the Federal Reserve might reconsider Powell’s leadership and alter current interest rates. He mentioned that some of his colleagues have lost faith in the Fed Chair, suggesting that there is growing dissent, particularly highlighted by a recent vote that saw two board members oppose Powell’s decision to maintain short-term interest rates between 4.25% and 4.5%—the first such opposition in three decades.
He referred to the discontent by stating, “There’s strong opposition to the Federal Reserve. It’s only going to get stronger! Too late for him!”
In light of this internal pressure, Federal Reserve Governor Adriana Kugler announced she would resign from the board on August 8th, creating an opportunity for Trump to nominate her replacement, a choice that requires Senate approval.
Generally, Fed governors who face such challenges tend to leave earlier than expected.
