President Trump Renews Attack On Fed Chair Powell

U.S. President Donald Trump reignited his criticism of Federal Reserve Chairman Jerome Powell on Wednesday, speaking at the NATO summit. Trump said he plans to announce a replacement for Powell, whose term ends in May 2026, though it remains unclear whether he will attempt to remove him before then.

“I know, within three or four people, who I’m going to pick,” Trump said. “He goes out pretty soon fortunately, because I think he’s terrible.”

Trump again questioned Powell’s mental capacity, calling him a “very average person mentally.”

The president has repeatedly teased the idea of firing Powell in the past, dubbing him “Too Late” for his perceived slowness in cutting interest rates. Each time, however, Trump has backed off following negative market reactions.

On Tuesday, Powell tempered expectations for a potential rate cut in July, signaling a continued cautious approach.

“Policy changes continue to evolve, and their effects on the economy remain uncertain,” Powell said. “For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”

Powell’s remarks contrast with recent statements from at least two Fed governors who said they would support a July cut if inflation remains subdued.

Trump has publicly urged the Fed to slash rates by a full percentage point or more, arguing such a move could save the federal government billions - or even up to a trillion dollars - in interest costs.