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President Donald Trump said Tuesday he has “no intention” of firing Federal Reserve Chair Jerome Powell, despite a barrage of recent social media attacks that stoked speculation about the central bank leader’s job security and triggered volatility in financial markets.
“This is a perfect time to lower interest rates,” Trump told reporters. “If he doesn’t, is it the end? No. It’s not. But it would be good timing.”
Trump blamed the media for misinterpreting his angry posts on Truth Social, including one last week stating Powell’s “termination cannot come fast enough” and another on Monday branding him a “major loser.”
The president reiterated his belief that the Fed should cut borrowing costs — a move that could counteract slowing growth due to tariffs — but he dismissed the idea that he seriously considered ousting Powell.
Market Jitters Follow Trump’s Fed Attacks
Trump’s remarks come after days of escalating online criticism of Powell, which coincided with a rise in U.S. Treasury yields and a drop in the dollar’s value, further rattling already-anxious markets.
Trump’s continued pressure on the Fed has become a hallmark of his economic messaging, especially as his trade policies raise concerns about inflation and weaker growth. The White House has reportedly been using Powell as a political foil, according to sources who spoke to POLITICO, especially as tariffs continue to reshape the economic outlook.
Treasury Secretary Warned Against Firing Powell
Treasury Secretary Scott Bessent has cautioned the White House that any effort to fire Powell would destabilize markets, potentially igniting a deeper crisis in confidence among global investors.
Despite the president’s inflammatory posts, White House officials and allies believe the comments are meant to apply public pressure on Powell, not signal an actual dismissal.
“It’s positioning,” one adviser told POLITICO. “Trump wants Powell to own any economic pain from tariffs.”
Legal and Political Constraints
While the president appoints the Fed chair, the law is murky about whether he can unilaterally fire one without cause. Past administrations have avoided interfering with the Federal Reserve to preserve its independence.
Trump’s walk-back on Tuesday appears aimed at reassuring investors while maintaining his political messaging that rates should be lower to support growth.
As Trump continues to navigate the economic fallout from tariffs, Powell’s independence — and the Federal Reserve’s credibility — may face more political crossfire in the months ahead.
