President Trump said Tuesday he had no intention of firing Federal Reserve Chairman Jerome Powell after escalating criticism of the independent agency’s decision not to lower interest rates.
“The press is running away with things. No, I’m not going to fire him. I hope he’s a little more aggressive in terms of his idea of lowering interest rates. This is the best time to cut interest rates,” Trump said.
“If not, is it the end? No, it’s not. But that’s a good time,” he added. “But no, I’m not going to fire him.”
Trump called Powell a “major loser” on Monday, suggesting that the Fed’s previous interest rate cuts aimed at supporting former President Biden and to encourage recent investors’ concerns.
The 90-year-old Supreme Court precedent is likely to protect Powell from being fired by the president for anything other than fraud or strict neglect of duties. Powell repeatedly argued that he would not be able to be legally fired and would refuse to leave until the end of his term in 2026.
The White House defended Trump’s criticism of Powell earlier Tuesday, saying it had the “right to express his dissatisfaction with the Fed.” Powell elicited Trump’s rage in his analysis that tariffs could cause economic growth, but inflation will increase.
Trump said last week he couldn’t wait for the Fed’s chair to be “dismissed” and insisted that Powell would leave if he tried to fire him. Kevin Hassett, chairman of the White House National Economic Council, said on Friday that the White House was looking for ways to fire Powell.
