Earlier in July, Trump had called for Powell’s removal, but a swift and negative reaction from the equity markets regarding the central bank’s autonomy prompted him to retract his statements.
When asked if he would still fire Powell with five months remaining in his term, Trump responded, “Maybe I still might.”
Powell, who was nominated by Trump in 2017 during his initial presidency, has faced criticism in Trump’s second term for his approach to lowering interest rates. Trump has labeled Powell as “too late” in implementing rate cuts.
On Monday, Trump also mentioned he was contemplating a lawsuit against Powell for “gross incompetence” related to an ongoing renovation project at the Fed.
With Powell’s term concluding in May 2026, he has the option to remain as Governor until 2028, potentially hindering Trump from appointing a nominee to the board if Powell resigns. The Fed Chair has yet to clarify his future intentions following the end of his term.
Regarding a new Fed Chair, Trump indicated he has someone in mind and plans to make the announcement “sometime in January.” He informed reporters at his Mar-a-Lago resort in Florida that there is ample time for this announcement.
(With Inputs From Agencies)
