Trump claims it is “extremely unlikely,” he will fire Fed Chair Powell in response to fresh criticism

Trump claims that even though Jerome Powell is “doing a lousy job,” it is “highly unlikely” that he will fire him.

Only a few hours after discussing the issue with Republican lawmakers, US President Donald Trump declared that it is “very unlikely” that he would fire Federal Reserve Chairman Jerome Powell.

Following rumors that Trump had contemplated removing Powell, markets and the currency experienced a slight decline on Tuesday. However, they swiftly recovered after Powell downplayed the comments.

Powell was initially selected by Trump during his first term, and Trump has been critical of the Fed head and has called on him to lower interest rates on numerous occasions. Powell’s allies have been accusing him of mismanaging the refurbishment of Federal Reserve premises, which has made him even more frustrated in recent weeks.

The president continued his attacks on Wednesday, calling Powell a “knucklehead” and accusing him of “doing a lousy job.”

Despite appearing to abandon the notion earlier this year, he acknowledged renewing talks about firing Powell, but he stated, “I’m not planning on doing anything.”

“It’s highly unlikely unless he has to leave for fraud,” Trump said when asked if he was ruling out Powell’s removal.

Powell can stay on the Fed’s Board of Governors until 2028, but his current tenure as chair of the Fed expires in May 2026.

Congress established the Federal Reserve as an autonomous agency, and it is in charge of establishing monetary policy without direct intervention from the White House.

Powell has previously maintained that the president lacks the legal right to fire him due to policy differences. But Trump administration officials have hinted that he might be fired for good reason.

Treasury Secretary Scott Bessent stated earlier this week that a “formal process” was underway to identify Powell’s potential replacement.

Bessent himself, conservative economist Kevin Warsh, and Kevin Hassett, the current head of the National Economic Council, are among those suggested as possible successors.

In 2017, Powell was nominated by Trump to take over as Fed chief, replacing Janet Yellen, who was appointed by Barack Obama. Powell’s term was extended in 2021 by former President Joe Biden.