Trump may reconsider firing Powell as Fed chair refuses to cut interest rates

President Trump said he may reconsider his decision not to fire Federal Reserve Chairman Jerome Powell amid his growing frustration that the central bank is not cutting interest rates. 

The Federal Open Market Committee decided Wednesday to keep the benchmark rate at 4.25% to 4.5%, given the uncertainty around Mr. Trump’s trade policies and inflation rate.

“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,” Mr. Powell said.

Mr. Trump lashed out at Mr. Powell after the decision and has continued to complain about it on social media. 

But the president took his criticisms a step further in a social media post on Friday, questioning whether he should reconsider ousting Mr. Powell. 

“Don’t say that you think there will be Inflation sometime in the future, because there isn’t now but, if there is, raise the Rates! We should be at the TOP of the attached List, not the bottom,” Mr. Trump said.

He was referring to a picture attached to his social media post showing the U.S. ranks 35th on world central bank rates.  

“I don’t know why the Board doesn’t override this Total and Complete Moron!” Mr. Trump said. “Maybe, just maybe, I’ll have to change my mind about firing him? But regardless, his Term ends shortly!”

Mr. Powell has said he will finish out his term as chair, which ends in May 2026. 

The Fed is an independent agency supposed to be free from direct political pressure. The president appoints a Fed chairman every four years but doesn’t have the authority to fire him or her.

Mr. Trump acknowledged in his Friday post that his continued calls for lower interest rates make it harder for Mr. Powell to do so while preserving the independence of his role. 

“I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I’ve tried it all different ways,” the president said. “I’ve been nice, I’ve been neutral, and I’ve been nasty, and nice and neutral didn’t work!”

Mr. Trump has repeatedly referred to Mr. Powell as “dumb” and an opponent of his who is “too late” in lowering interest rates for American borrowers as other countries have made cuts. 

“If he reduced them to the number they should be, 1% to 2%, that ‘numbskull’ would be saving the United States of America up to $1 Trillion Dollars per year,” he said. 

Mr. Trump nominated Mr. Powell to serve as Fed chair during his first term, but now he says he “should have never been there.” 

“I listened to someone that I shouldn’t have listened to, and Biden shouldn’t have reappointed him,” he said.

• Tom Howell Jr. contributed to this report.