US President Donald Trump said on Wednesday that he is not currently planning to remove Federal Reserve Chair Jerome Powell , though he sharply criticised the central bank chief’s performance.
"He's doing a lousy job but no, I'm not talking about that," Trump told reporters when asked if he was considering Powell ’s dismissal, AFP reported. However, he added that while such a move was "highly unlikely," he wouldn’t rule it out.
Trump also hinted at upcoming changes, noting that Powell's term ends next year. “I’ll get to make a change in the coming months,” he said, suggesting that a replacement could be on the cards in 2026.
Trump’s latest remarks came amid escalating tensions over monetary policy. The President has repeatedly lashed out at Powell for not cutting interest rates more aggressively, recently calling the central banker a “numbskull” and a “moron.”
On Tuesday, he took aim at a $2.5 billion renovation plan at the Federal Reserve, suggesting it could justify Powell’s removal. “I think it sort of is,” Trump said when asked if the spending was a fireable offense.
According to US media reports, Trump has received political backing from Republican lawmakers for firing Powell. CNBC quoted a White House official as saying, “They expressed approval for firing him. The president indicated he likely will soon.”
Powell, for his part, has made it clear he does not intend to step down early. He has repeatedly emphasised that the central bank’s independence on monetary policy is enshrined in law.
Markets reacted sharply to the developments. The dollar fell by one percent against the euro, while gold — considered a safe-haven asset — gained ground. Wall Street’s major indices also declined on the news, with the Dow Jones Industrial Average slipping 0.2 percent, the S&P 500 Index falling 0.3 percent, and the Nasdaq Composite retreating 0.4 percent. The yield on the 30-year US bond surged as investor concerns mounted.
"He's doing a lousy job but no, I'm not talking about that," Trump told reporters when asked if he was considering Powell ’s dismissal, AFP reported. However, he added that while such a move was "highly unlikely," he wouldn’t rule it out.
NOW - Trump says he is "not planning" to fire Fed Chair Powell. pic.twitter.com/LOTCk8Dija
— Disclose.tv (@disclosetv) July 16, 2025
Trump also hinted at upcoming changes, noting that Powell's term ends next year. “I’ll get to make a change in the coming months,” he said, suggesting that a replacement could be on the cards in 2026.
Trump’s latest remarks came amid escalating tensions over monetary policy. The President has repeatedly lashed out at Powell for not cutting interest rates more aggressively, recently calling the central banker a “numbskull” and a “moron.”
On Tuesday, he took aim at a $2.5 billion renovation plan at the Federal Reserve, suggesting it could justify Powell’s removal. “I think it sort of is,” Trump said when asked if the spending was a fireable offense.
According to US media reports, Trump has received political backing from Republican lawmakers for firing Powell. CNBC quoted a White House official as saying, “They expressed approval for firing him. The president indicated he likely will soon.”
Powell, for his part, has made it clear he does not intend to step down early. He has repeatedly emphasised that the central bank’s independence on monetary policy is enshrined in law.
Markets reacted sharply to the developments. The dollar fell by one percent against the euro, while gold — considered a safe-haven asset — gained ground. Wall Street’s major indices also declined on the news, with the Dow Jones Industrial Average slipping 0.2 percent, the S&P 500 Index falling 0.3 percent, and the Nasdaq Composite retreating 0.4 percent. The yield on the 30-year US bond surged as investor concerns mounted.
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