Trump says he ‘most likely’ won’t axe Powell
President Trump, who has waffled back-and-forth in recent weeks over whether he would move to oust Federal Reserve Chair Jerome Powell, signaled Friday that the move was unlikely.
In an interview with Newsmax’s Rob Finnerty, Trump said he is not likely to fire Powell before his term is up in May 2026, despite criticizing the Fed chief for once again keeping interest rates steady.
“Interest rates are too high, and despite that, we have a great economy,” the president said in the interview.
When asked if Powell would remain in place, he responded, “It’s very disruptive if you fire. So, I would say most likely, yeah.”
Trump has also pressed the Fed chief to resign over alleged missteps he has taken throughout his tenure — including the Powell’s request for funds to renovate the bank’s buildings in Washington.
“I would remove him in a heartbeat, but they say it would disturb the market,” he told Finnerty. “[The building] is not that intricate inside to start off with. I know more about renovating buildings or building buildings than anybody, maybe.”
“It’s way over budget by hundreds of millions of dollars, and he shouldn’t be doing that. It’s almost like he’s building a palace for himself, but he’s not going to be there much longer anyway,’ Trump added, “That’s the good news. He’ll never get to use it.”
During the president’s visit to the Federal Reserve headquarters last week, Powell confirmed that the project is on track to be finished in its expected timeline. Trump’s comments come as the White House announced a $200 million effort to revive a ballroom.
On Friday, Trump suggested that the Federal Reserve Board of Governors could wrangle control from Powell and deflate current rates.
The president said some colleagues have lost confidence in the Fed chief and teased that many on the board have already turned against Powell, pointing to a Wednesday vote marking the first double dissent in 30 years. Two board members positioned to serve as Powell’s replacement voted against maintaining short-term interest rates at a level of 4.25 percent to 4.5 percent.
“STRONG DISSENTS ON FED BOARD. IT WILL ONLY GET STRONGER! ‘TOO LATE!’” he wrote, referring to his nickname for Powell.
As pressure mounts on the leader, Federal Reserve Gov. Adriana Kugler announced Friday that she will resign from the board on Aug. 8, opening a slot for Trump to nominate someone to fill the role. The position requires Senate confirmation.
It is common for Fed governors to depart early, especially when they are not expected to be renominated.