Trump says he still might fire Powell as Fed chair pick looms
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Mr Jerome Powell’s term as chair is set to end in May 2026, but his term on the Fed’s Board of Governors does not expire until 2028.
PHOTO: REUTERS
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PALM BEACH, Florida – US President Donald Trump teased that he has a preferred candidate to be the next chair of the Federal Reserve, but is in no hurry to make an announcement – while also musing that he might fire the central bank’s current leader, Mr Jerome Powell.
“I do, still do – hasn’t changed,” Mr Trump said at a press conference on Dec 29, when asked if he has a favourite candidate. “I’ll announce him at the right time. There’s plenty of time.”
Mr Trump added that Mr Powell “should resign” and that he would “love to fire him”.
“Maybe I still might,” he told reporters at his Mar-a-Lago resort in Florida.
Mr Trump did not specify who his leading chair candidate was and said an announcement would be made in “January sometime”
National Economic Council director Kevin Hassett has been seen as the front runner, though Mr Trump has also expressed interest in former Fed governor Kevin Warsh.
Other finalists in the process have included current Fed governors Christopher Waller and Michelle Bowman and BlackRock’s Mr Rick Rieder.
Mr Trump has made numerous cryptic – and sometimes contradictory – remarks about his decision-making process regarding the new central bank chief.
Earlier in December, he said that he had narrowed the pool of contenders down to one, but subsequently said he was considering multiple candidates and heaped praise on several of the names on the shortlist.
Mr Trump has long been a critic of Mr Powell
The US leader has indicated that he wants the next chair to cut interest rates more aggressively as the White House looks to lower mortgage costs.
The central bank has lowered interest rates at each of its last three meetings, but officials signalled in December that they are likely to cut rates just once in 2026.
Mr Trump said on Dec 29 he was considering a “gross incompetence” lawsuit against Mr Powell related to an ongoing renovation project at the Fed.
Mr Powell’s term as chair is set to end in May 2026, but his term on the Fed’s Board of Governors does not expire until 2028. He has not said whether he would depart when his tenure as chair ends.
If he stays, Mr Powell would deny Mr Trump the ability to name another new member of the Fed board. BLOOMBERG
