WASHINGTON – President Donald Trump on Friday sharply criticized Federal Reserve Chair Jerome Powell, saying he would “love” to see Powell step down and again pressed for a steep cut in interest rates—down to just 1%.
“I’d love him to resign if he wanted to, he’s done a lousy job,” Trump told reporters, even calling Powell “stupid” and accusing him of having “Trump Derangement Syndrome.”
Trump has consistently slammed Powell for not cutting rates more aggressively, insisting lower borrowing costs would boost the economy. The Fed currently holds its key rate between 4.25% and 4.50%, after choosing to keep it steady last week.
Trump Eyes a New Fed Chief
Powell’s term is set to expire in May 2026, but Trump signaled he won’t wait to make changes. He said he plans to nominate a successor who will bring rates down.
“I think we should be paying 1% right now,” Trump added. “We’re paying more because we have a guy who doesn’t know what he’s doing.”
The Federal Reserve chair has traditionally operated independently of presidential pressure, with legal protections against dismissal without cause. But Trump has repeatedly tested those norms, issuing threats to remove Powell during both of his terms in office.
What’s Next
Trump’s remarks suggest continued tension with the Fed heading into 2026, as he looks to reshape the central bank with a more rate-cut-friendly replacement.
While Powell has resisted political pressure and emphasized the importance of managing inflation, Trump has made it clear: he wants lower rates—and leadership that aligns with his economic vision.
