US President Donald Trump has dramatically escalated his public confrontation with Federal Reserve Chair Jerome Powell, openly threatening to fire the central bank chief over disagreements on interest rate policy.
Public Threat at Investment Forum
During a Saudi Arabia-backed investment forum held at Washington's Kennedy Center on Wednesday, Trump didn't mince words when discussing his frustration with Powell. "I'll be honest, I'd love to fire his ass," the president declared before an audience of investors and officials.
The public outburst represents the latest chapter in Trump's long-running criticism of Powell, whom he originally nominated during his first presidential term. The president has consistently argued that the Fed chair has maintained interest rates "too high" for too long, claiming this approach is unnecessarily slowing America's economic momentum.
Pressure on Treasury Secretary
Trump used the Washington forum to directly pressure Treasury Secretary Scott Bessent, who was present in the audience, to accelerate the search for Powell's replacement. "You've got to work on him, Scott. The only thing Scott's blowing it on is the Fed," Trump told his treasury chief.
In remarks delivered with a mix of seriousness and humor, Trump added another pointed warning: "The rates are too high, Scott, and if you don't get it fixed fast, I'm going to fire your ass." This public pressure on Bessent underscores the administration's urgency in addressing monetary policy concerns.
Timeline for Powell's Successor
The leadership transition at the Federal Reserve appears to be moving forward rapidly. Powell's term as Fed chair concludes in May, though his position as governor extends until 2028.
Bessent, who is spearheading the selection process, revealed in a Fox News interview on Tuesday that Trump plans to meet the three final candidates after Thanksgiving. The administration expects to announce the new Fed chair before Christmas, according to the treasury secretary's timeline.
Trump acknowledged that his administration has "great names" under consideration for the pivotal economic position. However, he noted that Bessent himself has declined to be considered for the role, despite the president's repeated praise for his treasury secretary.
The selection process has identified five leading contenders for the Fed's top position:
- Kevin Hassett, White House economic adviser
- Kevin Warsh, former Fed governor
- Christopher Waller, current Fed governor
- Michelle Bowman, Fed vice chair for supervision
- Rick Rieder, BlackRock executive
Ongoing Policy Disputes
The tension between Trump and Powell extends beyond interest rate disagreements. The president has frequently accused the Fed chair of incompetence and financial mismanagement, including claims that the Federal Reserve's building renovation project has run billions over budget.
Powell has pushed back against these allegations, countering that Trump is incorrectly including costs from a separate central bank office project that was completed five years ago. This exchange highlights the deepening rift between the administration and the traditionally independent Federal Reserve.
The public nature of Trump's latest comments, combined with the accelerated timeline for selecting Powell's successor, signals a significant escalation in the president's efforts to influence monetary policy direction during a critical period for the US economy.
