In a social media post on Truth Social, U.S. President Donald Trump once again raised the possibility of dismissing Federal Reserve Chair Jerome Powell, whom he has frequently criticized for not lowering interest rates. Trump questioned why the Board does not intervene to override Powell, hinting at a potential change of mind about firing him as his term is nearing an end. Despite acknowledging that his criticism may hinder Powell’s actions, Trump expressed frustration over his efforts to influence rate adjustments.
While traditionally Fed chairs are considered immune to presidential removal except for specific reasons, Trump has repeatedly threatened to challenge this norm with his persistent calls to dismiss Powell. However, he often backtracks on these threats, as he did during a White House briefing on June 12, stating that he has no intention of firing Powell. The Fed recently decided to maintain interest rates between 4.25% and 4.50%, projecting slower economic growth, increased unemployment, and inflation by the end of the year.
Although Fed Governor Chris Waller suggested the possibility of rate cuts in July due to declining inflation and weakening labor market indicators, the Fed’s decision to keep rates unchanged received unanimous support, indicating no plans to override Powell among his colleagues. Trump is expected to nominate a successor to Powell before his term ends in May 2026.
A May Supreme Court ruling provided reassurance that Trump’s authority to dismiss Powell is limited, recognizing the Fed as a unique quasi-private entity.
