On June 20, President Trump once again raised the idea of dismissing Jerome Powell, the chairman of the Federal Reserve. Despite previously stating that he would not dismiss the soon-to-be outgoing central bank chief, Trump now says he may have to “change his mind”.
In a post on his social media platform “Truth Social” on Friday evening, Trump strongly criticized Powell’s decision on interest rate cuts. He wrote, “I understand completely that my strong criticism makes it harder for him to do what he should be doing – lowering interest rates. But I have tried various ways. I’ve been friendly, neutral, and even hostile, and being friendly and neutral didn’t work!”
Trump said that Powell is clearly a “Trump Hater” and expressed regret for trusting others’ recommendations to nominate Powell as Federal Reserve chairman during his first presidential term.
“We have almost no inflation, our economy is performing very well,” Trump continued, stating that with tariff revenue surging and factories being built across the country, the US economy will be better than ever before. He pointed out that if Powell is concerned about inflation or other issues, then just lower interest rates, and if there are “other factors” at play, then raise rates again.
“Don’t say you think inflation will occur at some point in the future, because it’s not happening now, but if it does, then raise rates!” Trump said, referring to a chart of central bank interest rates attached to the post. “We should be at the top of the list attached in this post, not the bottom.”
In the lengthy post, Trump questioned why the Fed did not override Powell’s decision, stating, “Maybe, just maybe, I will have to change my mind about dismissing him? But regardless, his term is ending soon!”
Trump’s remarks came after the Federal Reserve’s Federal Open Market Committee voted on Wednesday to maintain the key interest rate unchanged. This is the Fed’s fourth consecutive decision to keep rates unchanged since the last rate cut in December last year.
Powell’s term is set to end in May 2026. He stated in November last year that if Trump asked him to resign, he would not agree, saying that under the law, the president does not have the authority to dismiss or demote him or other Fed officials in leadership positions.