Trump says he'd 'love to fire' Fed chief Powell; hints at naming replacement next month
President Trump expressed his strong desire to dismiss Federal Reserve Chair Jerome Powell, even contemplating legal action over alleged "gross incompetence." While Trump has a preferred successor, he indicated no immediate rush for an announcement, hinting at a January reveal. He previously considered firing Powell but was deterred by market reactions.
US President Donald Trump on Monday renewed his attack on Federal Reserve Chair, saying he would "love to fire him" and was even considering a lawsuit over Jerome Powell's "gross incompetence." Speaking at a press conference, Trump said he still has a preferred candidate to succeed Powell but is not in a hurry to announce the name.
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"I do, still do — hasn’t changed," he said when asked if he has a favourite. "I’ll announce him at the right time. There’s plenty of time." Trump said he had come close to seeking Powell’s removal in July but backed off after financial markets reacted negatively. He also said he was weighing legal action against Powell, linking it to an ongoing renovation project at the Federal Reserve."We’re thinking about bringing a suit against Powell for incompetence," Trump said during a press conference with Israeli Prime Minister Benjamin Netanyahu.
Referring to the renovation, he added, "It’s gross incompetence against Powell. And it was his baby," accusing the Fed chief of allowing costs to spiral.The president said Powell "should resign" and claimed it would be "a favor to the nation," noting that Powell’s term as chair is nearing its end.
"I would fire him. I’d love to fire him. But we’re so close, you know," Trump said, later adding at his Mar-a-Lago resort, "Maybe I still might." While Trump did not name his top choice, he said the announcement would come "sometime in January." National Economic Council Director Kevin Hassett is widely seen as a frontrunner, though Trump has also shown interest in former Fed governor Kevin Warsh. Other names in the mix include current Fed governors Christopher Waller and Michelle Bowman, as well as BlackRock executive Rick Rieder, according to Bloomberg.Trump has sent mixed signals about his decision, at times saying he had narrowed the field to one candidate before later indicating he was still considering multiple options.Trump, a long-time critic of Powell, whom he appointed during his first term has repeatedly argued that the Federal Reserve should cut interest rates more aggressively to lower borrowing and mortgage costs. The central bank has lowered rates at its last three meetings, but policymakers signaled in December that only one rate cut is likely in 2026.