Mr. Trump: Powell Is a "Fool" But I Will Not Fire Him

President Trump affirmed that he would not fire Fed Chairman Jerome Powell, but continued to demand a fall in interest rates, calling Powell a "fool" and threatening to "force" the Fed to act. Mr. Trump declared that he would not fire Mr. Powell but continues to demand a fall in interest rates. President Donald Trump affirmed that he has no intention of firing Fed Chairman Jerome Powell, but still criticized the Fed for its delayed actions in lowering interest rates, while calling Powell a "fool" and threatening to "force" the central bank. On June 12, 2025, President Donald Trump reaffirmed that he has no plans to fire Federal Reserve Chairman (Fed) Jerome Powell, just days after announcing he would soon choose a leader for the central bank. Speaking at an event at the White House, Trump refuted rumors from the media: "Fake news says that 'If you fire Powell, it will be very bad.' I don't understand why it would be bad, but I am not firing him." Mr. Trump continues to criticize the Fed for its slow rate cuts amid easing inflation. Mr. Powell's term will end in May 2026. "We call him 'Too Late', right?" Mr. Trump said, expressing frustration that high interest rates increase the federal government's borrowing costs. He believes the Fed can raise rates later if inflation comes back. "Assuming there is inflation, raise the interest rates in another year. I don't mind, go ahead and increase it. I will call him," Mr. Trump said. "But he will be too late again." The Supreme Court protects the Fed Last month, the U.S. Supreme Court protected the Fed from pressure to fire senior officials from President Trump, describing the central bank as a "privately held entity with a special structure." This decision helps ensure job security for Powell, after Trump sent mixed signals about whether he would remove him before the end of his term. Back in April, Trump had stated that he had no intention of firing Powell. Fed officials are expected to keep interest rates unchanged at next week's two-day policy meeting. Powell and his colleagues are awaiting more information on the impact of Trump’s policies, including tariffs, taxes, and immigration, before adjusting interest rates. Mr. Trump called Mr. Powell a "fool," threatening to intervene. On the same day, at the signing of the bill to reverse California's emissions regulations in the East Room, Trump attacked Powell, calling him a "fool" and implied that he could "force" the Fed to act, although he did not specify the details. Trump reiterated his appointment of Powell in 2017 but emphasized that he wanted Powell to lower interest rates immediately. "If we fall interest rates by one point, we save 300 billion USD each year. Fall two points, save 600 billion USD," Mr. Trump said. "Just because a fool says 'I see no reason to cut interest rates'." Mr. Trump revealed during his meeting with Powell last month that he requested an immediate fall in interest rates and supported a rise in interest rates if inflation returned. He hinted that he could "force" the Fed, but did not clarify whether this related to firing Powell or intervening in interest rates. "Someone asked, 'who is the genius who came up with this?' I said, 'it's me,'" Mr. Trump declared, suggesting a short-term fall in interest rates for one year. Mr. Trump continuously criticized the Fed for keeping interest rates unchanged despite a slight fall in inflation. He once said meeting Mr. Powell was "like talking to a wall." Meanwhile, Mr. Powell defended his stance of not lowering interest rates, waiting to assess the impact of Trump's trade policies and tax cuts on the U.S. economy. The Supreme Court's ruling and the Fed's stance indicate that tensions between Mr. Trump and the central bank continue, while upcoming interest rate decisions will depend on economic developments and the Trump administration's policies.