“I know within three or four people who all I’m going to pick,” Trump said Wednesday at the NATO summit in The Hague, Netherlands, without naming specific candidates.
“He goes out pretty soon, fortunately, because I think he’s terrible,” the president said of Powell.
Trump has been particularly frustrated with Powell’s cautious approach toward cutting interest rates. During two consecutive days of congressional testimony this week, Powell said he is waiting to get the inflation numbers for June and July before implementing a rate cut this summer.
“If we make a mistake here, people will pay … the cost for a long time,” Powell told a Senate committee on Wednesday. He said rate cuts are possible this year, but “we’re going to take a careful approach.”
The Fed is concerned about Trump’s tariffs, specifically whether they warrant holding interest rates steady or cutting them. Powell’s stance puts him at odds with the president, who wants to see rates lowered by at least 2 or 3 percentage points.
“We should be at least two to three points lower … if things later change to the negative, increase the Rate,” Trump posted on Truth Social on Tuesday ahead of Powell’s House hearing.
Trump reportedly considers at least five possible candidates to lead the Fed after Powell’s term ends in May 2026. Citing sources, the Wall Street Journal reported that those contenders are former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent, former World Bank President David Malpass, and Fed Governor Christopher Waller.
Waller, one of two Fed governors appointed by Trump, says they’re open to a July rate cut.
The reporting reveals that Trump may be eyeing Powell’s replacement by September or October. This decision could come earlier than the typical three- to four-month transition period.
POWELL DISMISSES JULY RATE CUT, HEIGHTENING TENSION WITH FED BOARD AND TRUMP
The White House remains quiet on whether Trump is considering an earlier announcement for Fed chairman. Still, a spokesperson said the Fed should prioritize a monetary policy suitable for economic growth.
“The Administration is now laying the groundwork, including with The One, Big, Beautiful Bill, to turbocharge economic, job, and investment growth,” White House spokesman Kush Desai said in a statement, “and it’s high time for monetary policy to complement this agenda and support America’s economic resurgence.”
