Trump's Debate Over Powell's Fed Leadership Continues

President Donald Trump expressed uncertainty over firing Federal Reserve Chair Jerome Powell, hinting that he might reconsider the decision despite Powell's term ending soon. Trump criticized Powell's failure to lower interest rates and threatened to challenge the legal precedent protecting the Fed chair from dismissal without malfeasance.

President Donald Trump has once again considered the possibility of dismissing Jerome Powell, the Federal Reserve chair, due to disagreements over interest rate policies. Trump has frequently criticized Powell for not lowering rates, stating that the criticism makes Powell's job more challenging.

Despite ongoing threats to remove Powell, Trump previously declared he would not go through with the firing. Recent Fed decisions have maintained interest rates, predicting slower economic growth alongside rising unemployment and inflation by year-end.

The legal standing preventing a president from dismissing a Fed chair without misconduct was reaffirmed by a Supreme Court ruling in May, offering Powell continued security in his role until the end of his term in May 2026.

(With inputs from agencies.)