President Trump said Tuesday he has “no intention of firing” Federal Reserve chair Jerome Powell, one day after the president called Powell a “major loser” and publicly lobbied the central bank chief to lower interest rates at a faster clip.
When asked by reporters in the Oval Office if he has any plans to fire Powell, Mr. Trump said he “never did” and claimed “the press runs away with things” — though he once again pressed Powell to cut interest rates, which remain elevated after the Fed hiked rates to quell inflation.
“This is a perfect time to lower interest rates,” Mr. Trump said. “If he doesn’t, is it the end? No, it’s not. But it would be good timing.”
Last week, Mr. Trump argued in a social media post that Powell is “always TOO LATE AND WRONG,” and said his “termination cannot come fast enough,” drawing speculation that the president could try to oust Powell before his four-year term ends next year.
Powell has led the Fed since 2018, after Mr. Trump initially nominated him for the job. Former President Joe Biden nominated Powell for a second term, bringing his time atop the central bank to at least May 2026.
It’s not clear if Mr. Trump has the power to fire Powell. According to federal law and past legal precedent, members of the Federal Reserve board — which includes the chair — can only be removed from their jobs before their terms expire “for cause.” However, the Trump administration has argued it has the legal right to fire members of other independent federal agencies, setting up a court fight over the issue that could have broad consequences.
The administration will “study” whether it has the right to fire Powell, National Economic Council Director Kevin Hassett told reporters last week.
For his part, Powell said last year he will not step down if Mr. Trump asks him to leave his job.
This is a breaking story. It will be updated.