Speaking at the NATO summit on Wednesday, U.S. President Donald Trump renewed his attacks on Federal Reserve Chair Jerome Powell, signaling his intention to name a successor before Powell’s term ends in May 2026 — though it remains uncertain whether Trump will try to remove him earlier.
“I’ve narrowed it down to three or four people,” Trump said. “He’s out pretty soon, thankfully, because I think he’s terrible.”
Trump also questioned Powell’s mental fitness, calling him “very average mentally,” echoing previous personal criticisms.
This isn’t the first time Trump has floated the idea of firing Powell. He’s repeatedly criticized the Fed chief for being too slow to cut interest rates, often referring to him as “Too Late.” However, Trump has previously walked back such threats amid market volatility following his remarks.
On Tuesday, Powell sought to cool speculation about a July rate cut, maintaining a cautious tone.
“Policy continues to evolve, and we still face uncertainty over how it affects the broader economy,” Powell said. “We’re in a good position to wait and assess before making any changes to our stance.”
Powell’s comments appeared more reserved than recent remarks from two other Fed officials, who expressed willingness to support a rate cut in July if inflation continues to ease.
Trump, meanwhile, has been vocal in calling for aggressive rate reductions — advocating for cuts of at least a full percentage point — arguing that doing so could save the federal government hundreds of billions, or even up to a trillion dollars, in interest payments.
