- Trump says he wants Powell removed “right now,” blaming policy disagreements.
- Federal law prevents firing a Fed Chair without cause, limiting Trump’s options.
- A shortlist of five candidates is under review as Trump signals a decision may be near.
President Trump ignited a fresh wave of controversy on Tuesday after saying he would remove Federal Reserve Chair Jerome Powell “right now,” if not for people “holding [him] back.” The comments came ahead of a White House meeting with Saudi Crown Prince Mohammed bin Salman, where Trump sharply criticized Powell’s handling of interest rates. Calling the Fed Chair a “fool” and a “stupid man,” Trump made clear he prefers to see a leadership change sooner rather than later, even though Powell’s term does not expire until May.
Legal Limits and Market Risks Complicate Trump’s Push
Despite Trump’s blunt remarks, federal law does not allow a president to fire a Fed Chair without cause — and courts typically define “cause” as misconduct, not policy disagreements or personal hostility. Analysts warn that attempting to fire Powell could spark market instability, given the central bank’s role in global financial confidence. Still, this is not the first time Trump has floated the idea, having repeatedly threatened to force Powell out during both of his administrations.
Treasury Secretary Declines the Job as Shortlist Takes Shape
Trump noted that he “liked” Treasury Secretary Scott Bessent for the role but confirmed Bessent declined, saying he preferred to remain at Treasury. Bessent added that he will soon conduct interviews with finalists for the Fed nomination. According to Trump, the field includes Michelle Bowman, Christopher Waller, Kevin Warsh, Kevin Hassett, and BlackRock executive Rick Rieder. Trump hinted that he may already know his choice, though he emphasized the list contains both “surprising” and “standard” names.
Political Pressure and Policy Tensions Are Rising
The president’s comments land at a sensitive moment for monetary policy. The Fed is navigating mixed signals on inflation and employment, while markets remain deeply reactive to any indication of a shift in leadership. Trump’s public criticism adds an extra layer of uncertainty, raising questions about how soon he will announce a nominee and what direction the next Fed Chair may take. Here is where the situation stands: Powell remains protected for now, but Trump is making it clear he’s eager for a new era at the central bank.
