President Donald Trump said Friday he would have fired Federal Reserve Chairman Jerome Powell immediately, if not for concerns that doing so might cause disruption in the financial markets.
“They say it would disturb the market,” Trump told Newsmax. “I would remove him in a heartbeat… He gets out in seven or eight months, and I’ll put somebody else in.”
Powell Under Fire for HQ Spending and Interest Rates
Trump was also asked if Powell’s conduct could constitute “cause” for removal, citing a $2.9 billion renovation of the Federal Reserve’s headquarters. The president sharply criticized the cost overruns:
“It’s way over budget by hundreds of millions of dollars. He shouldn’t be doing that. It’s almost like he’s building a palace for himself.”
Trump compared the project to his own renovation of the Old Post Office building in D.C., now a luxury hotel, and said Powell “won’t even get to use” the new headquarters because his term is ending soon.
“That’s the good news,” Trump said. “He’ll never get to use it.”
Trump: Rates Too High Despite Strong Economy
The president again called for the Federal Reserve to cut interest rates, arguing that the current rate—4.25% to 4.5%—is unnecessarily high given the strength of the economy.
“The Fed rate is too high. Interest rates are too high. And despite that, we have a great economy.”
Powell Blames Tariffs, Trump Pushes Back
During a panel in July, Powell claimed that the Fed likely would have cut interest rates if not for the economic effects of Trump’s “Liberation Day” tariffs.
That remark drew swift backlash, with some officials demanding a formal review.
Trump responded by sharing a report in which the head of the Federal Housing Finance Agency called on Congress to investigate Powell’s spending on the Fed’s headquarters.
The comments have intensified pressure on Powell, whose term ends in early 2026. Trump has made clear he plans to install new leadership at the Fed that aligns with his economic agenda.
