Trump says he still might fire Jerome Powell as Fed chair pick looms
The central bank has lowered interest rates at each of its last three meetings
[WASHINGTON] US President Donald Trump teased that he has a preferred candidate to be the next chair of the US Federal Reserve, but is in no hurry to make an announcement, while also musing that he might fire the central bank’s current leader, Jerome Powell.
“I do, still do – hasn’t changed,” Trump said at a press conference on Monday (Dec 29), when asked if he has a favourite candidate. “I will announce him at the right time. There’s plenty of time.”
Trump added that Powell “should resign” and that he’d “love to fire him”. The president came close to seeking Powell’s ouster in July, but backed away after a negative reaction in financial markets.
“Maybe I still might,” Trump told reporters at his Mar-a-Lago resort in Florida.
Trump did not specify who is his leading chair candidate and said an announcement would be made in “January sometime”.
National Economic Council Director Kevin Hassett has been seen as the frontrunner, though Trump has also expressed interest in former Fed governor Kevin Warsh. Other finalists in the process have included current Fed governors Christopher Waller and Michelle Bowman and BlackRock’s Rick Rieder.
Trump has made numerous cryptic – and sometimes contradictory – remarks about his decision-making process regarding the new central bank chief. The president earlier in December said that he’d narrowed the pool of contenders down to one, but subsequently said he was considering multiple candidates and has heaped praise on several of the names on the short list.
Trump has long been a critic of Powell, who he picked to lead the central bank during his first term. The president has indicated he wants the next chair to more aggressively cut interest rates as the White House looks to lower mortgage costs.
The central bank has lowered interest rates at each of its last three meetings, but officials signalled in December they’re likely to cut rates just once in 2026.
Trump said on Monday that he was considering a “gross incompetence” lawsuit against Powell related to an ongoing renovation project at the Fed. Powell’s term as chair is set to end in May of 2026, but his term on the Fed’s Board of Governors does not expire until 2028.
Powell has not said whether he would depart when his tenure as chair ends. If he stays, Powell would deny Trump the ability to name another new member of the Fed board. BLOOMBERG
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