Trump says Powell will stay

[UNITED STATES] President Donald Trump has stated that he has "no intention" of removing Federal Reserve Chair Jerome Powell, despite ongoing public criticism of the central bank's monetary policies. Trump's remarks come after recent comments on social media labeling Powell a "major loser" and expressing frustration over the Fed's interest rate decisions.​

In a statement, Trump clarified, "I have no intention of firing Jerome Powell. His job is safe." However, he reiterated his dissatisfaction with the Fed's approach, stating, "They raised rates too quickly last year and are cutting rates too slowly this year." The president has previously called for more aggressive rate cuts, even suggesting that the Fed should consider negative interest rates, a policy adopted by some other central banks.​
AP News

Despite the president's criticism, Powell has maintained that the Federal Reserve operates independently of political influence. In response to Trump's comments, Powell emphasized, "The independence of the Federal Reserve from direct political control has served the public well over time." ​

Powell, who was appointed by Trump in 2018, has repeatedly defended the Fed’s cautious approach to rate cuts, citing persistent inflation concerns and mixed signals in labor and housing markets. In recent months, inflation has shown signs of moderation but remains above the Fed’s long-term target of 2 percent. Analysts say this complicates any case for aggressive rate reductions, which could risk reigniting price pressures.

Recent economic data has added nuance to the debate. The Commerce Department reported that GDP growth slowed slightly in the first quarter of 2025, raising concerns about a potential economic cooldown. However, core inflation remains stubbornly elevated, suggesting that the central bank’s cautious path may be warranted. This economic crosscurrent has fueled a broader conversation on the appropriate pace and direction of monetary policy.

Legal experts note that the president cannot unilaterally remove the Fed chair. Under the Federal Reserve Act, the chair can only be removed "for cause," a standard that does not encompass policy disagreements. Powell has expressed his intention to serve out his term, which is set to end in 2026.​

Historically, tensions between the White House and the Federal Reserve are not unprecedented. Previous presidents, including Lyndon B. Johnson and Richard Nixon, also expressed discontent with Fed policy during their administrations. However, such clashes rarely led to personnel changes, reinforcing the norm of central bank independence even during periods of political pressure.

Financial markets and institutional investors have responded cautiously to the latest exchange between Trump and Powell. While the president’s comments caused short-term volatility, many on Wall Street remain focused on broader economic indicators and upcoming Fed meetings. Economists anticipate the central bank will hold rates steady in its next policy decision, pending further clarity on inflation and employment trends.

The tension between the White House and the Federal Reserve has contributed to market volatility. Stock indices experienced fluctuations following Trump's critical remarks, and bond yields rose amid concerns over potential political interference in monetary policy. ​

While Trump has publicly stated that Powell's position is secure, the ongoing public disagreements highlight the complex relationship between the executive branch and the central bank. As the 2026 presidential election approaches, the Federal Reserve's policies and its independence are likely to remain key topics of discussion.