On Wednesday, Trump stated that he is thinking about three or four people to replace Jerome Powell as chair of the Federal Reserve.
“I know within three or four people who I’m going to pick,” Trump said at a news conference at the Hague following a NATO meeting. “Thankfully, he leaves pretty soon; I find him repulsive.”
Since Powell’s tenure as chair of the Federal Reserve will conclude in May 2026, Trump has been mum on the subject of possible replacements. During his first term in office, he nominated Powell for the position.
Powell is protected from Trump’s attempted ouster because the Supreme Court ruled last month that the president’s relationship with the Federal Reserve is distinct from that of other independent institutions.
In his first term, the president thought about dismissing the head of the Federal Reserve, but he decided against it because the market reaction was negative. Despite Trump’s repeated demands that the Federal Reserve lower interest rates, he has stated that he has “no intention” of removing Powell from his position before the conclusion of his tenure.
“Maybe, just maybe, I’ll have to change my mind about firing him?” Trump said last week on social media, continuing his speculation about a possible removal.
On the subject of interest rates, the president and Powell are becoming more and more apart. This week, the president of the central bank warned legislators that prices will rise due to Trump’s tariffs and that the Fed will keep interest rates unchanged to prevent inflation.