President softens tone after days of public pressure on interest rate policy
President Donald Trump walked back his aggressive tone on Federal Reserve Chair Jerome Powell Tuesday, telling reporters that despite recent public outbursts, he has “no intention of firing” the central bank leader.
“I never did,” Trump said when asked about removing Powell. “The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates.”
The president’s remarks come less than a week after a barrage of social media posts in which he referred to Powell as a “major loser” and claimed his termination “can’t come fast enough.” On Monday, he again criticized Powell on Truth Social, blaming him for a potential economic slowdown due to inaction on rate cuts.
“There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote.
Tuesday’s comment represents a significant deescalation in tone following Powell’s warning last week that Trump’s trade tariffs could lead to higher inflation and slower growth. The Fed chair had also reiterated the central bank’s plan to hold interest rates steady for now, a move that drew Trump’s ire.
White House economic adviser Kevin Hassett added fuel to the fire on Friday, stating that the administration was reviewing legal options for possibly removing Powell. However, pushback came swiftly from members of Congress, including Republican Senator John Kennedy.
“I don’t think the president, any president, has the right to remove the Federal Reserve chair,” Kennedy said, underscoring the need for Fed independence.
The markets also reacted poorly to the political pressure, with stocks falling Monday amid fears of destabilizing the central bank’s autonomy.
For his part, Powell has maintained that he intends to serve through the end of his term in May 2026. He also expressed confidence last week that a Supreme Court case exploring presidential authority to remove board members from independent agencies would not apply to the Fed—but noted the situation is being monitored.
