(Bloomberg) — Former President Donald Trump stated that the dismissal of Federal Reserve Chair Jerome Powell cannot happen soon enough, asserting that the US central bank should have cut interest rates earlier this year and should do so immediately.
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Trump, mockingly referring to the Fed chairman he appointed during his first term as “Too Late,” expressed in a post on Truth Social early Thursday that “Powell’s ouster cannot come soon enough!”
It was unclear whether Trump was alluding to the completion of Powell’s term or advocating for his immediate removal from the chair position. The White House has yet to respond to inquiries for clarification.
Powell’s term as chair extends until May 2026, while his governorship lasts until February 2028. Trump’s comments were made a day after Powell reiterated in Chicago that the Fed is not in a hurry to lower rates and is seeking more clarity regarding the economy.
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The president’s authority to dismiss top officials at agencies previously viewed as having a level of independence from the White House has gained attention in recent months, following the administration’s termination of several senior officials at the Federal Trade Commission, National Labor Relations Board, and Merit Systems Protection Board.
Powell’s Perspective
These removals are seen as a direct challenge to a 1935 Supreme Court ruling that established agency independence. Powell noted Wednesday the relevance of a current Supreme Court case regarding the removal of officials from the NLRB and MSPB.
“There’s a Supreme Court case. People have probably read about it,” Powell stated in response to questions at the Economic Club of Chicago. “It’s a case that’s generating a lot of discussion. I don’t think that decision will affect the Fed — but I’m uncertain,” he added. “We’re monitoring the situation closely.”
Powell reinforced his point that “our independence is legally protected,” and that the Fed’s statute stipulates “removal only for cause.”
Earlier this week, Treasury Secretary Scott Bessent indicated that the administration is roughly six months away from discussing Powell’s successor. In a Bloomberg Television interview, Bessent mentioned that candidate interviews for Powell’s replacement are planned for “sometime in the fall.”
