#TrumpVsPowell Trump Says He Won’t Fire Powell, But Wants More Rate Cuts

U.S. President Donald Trump stated he has “no intention of firing” Federal Reserve Chair Jerome Powell, despite frequently criticizing him. However, Trump expressed a desire for Powell to be “a little more active” in reducing interest rates.

Speaking from the Oval Office on Tuesday, Trump also shared optimism about improving trade relations with China. His latest remarks follow intensified criticism last week, when he labeled Powell “a major loser,” which triggered a dip in stocks, bonds, and the U.S. dollar—though markets have since rebounded.

The comments came after National Economic Council Director Kevin Hassett said Friday that Trump was exploring whether he could legally remove Powell. Trump originally nominated Powell to lead the Fed in 2017 during his first term, while President Joe Biden later reappointed him for a second four-year term at the end of 2021.

So far this year, the Fed has held interest rates steady, following a rate cut of one percentage point late last year—a decision Trump has sharply opposed. It's uncertain whether a president has the legal authority to dismiss the Fed chair, and no president has ever attempted it.

Also on Tuesday, Trump said he would be “very nice” during trade talks with Beijing. He suggested that tariffs would decrease if a deal were reached, but not be eliminated entirely. Meanwhile, Treasury Secretary Scott Bessent was quoted as saying a reduction in trade tensions with China is expected, calling the current situation “unsustainable.”

#TrumpVsPowell