Trump Says He Has ‘No Intention Of Firing’ Jerome Powell

 

President Donald Trump shakes hands as he announces his nominee for Chairman of the Federal Reserve, Jerome Powell, during his first term in 2017.

President Donald Trump said Tuesday he “has no intention of firing” Jerome Powell from the Federal Reserve, seemingly shutting down speculation he would attempt to remove Powell from his post as Trump has grown increasingly critical of Powell’s more cautious monetary policy stance.

Key Facts

“I have no intention of firing him, I would like to see him be a little more active in terms of his idea to lower interest rates,” Trump said from the Oval Office while answering questions from reporters Tuesday.

Trump also said he “never did” intend to fire Powell and said “the press runs away with things.”

As recently as last Thursday, Trump posted on Truth Social attacking Powell for not lowering interest rates and saying “Powell’s termination cannot come fast enough!”

Crucial Quote

“This is a perfect time to lower rates. If he doesn't, is it the end? No, it’s not, but it would be good timing,” Trump said Tuesday. “It should’ve taken place earlier, but no, I have no intention to fire him.”

Key Background

Trump appointed Powell, a Republican, as chairman of the Federal Reserve during his first term in 2017. Trump turned on Powell quickly though, and reportedly first suggested firing him in 2018 when the Fed raised rates, and in 2019 he called Powell an “enemy” when they again disagreed over interest rate cuts. Trump has suggested Powell be fired a number of times, but said after he won election to a second term in November he didn’t plan to fire Powell. For his part, Powell said in November he will serve the remainder of his term and that he would not step down if Trump asked him to.

Could Trump Fire Powell If He Wanted To?

The 1935 Humphrey’s Executor decision from the Supreme Court sets the precedent that the president can’t fire leaders from independent federal agencies—like the Federal Reserve—over policy disagreements. Trump has already fired other commissioners of independent agencies, though, and those decisions are facing legal challenges that may rise to the Supreme Court. Last week, Powell said he and other independent leaders are “not removable except for cause,” though he said he wasn't sure if a decision on Trump’s other firings would apply to the Fed, The Guardian reported. Even if Trump were allowed to fire Powell, his Treasury Secretary Scott Bessent reportedly told him it would risk upending financial markets, Politico reported.

When Will Powell’s Term As Fed Chairman Be Up?

Powell’s term as chairman goes until May 2026, and he will remain a governor of the central bank until February 2028.