In a fresh escalation of his long-running public feud, former US President Donald Trump has once again launched a scathing attack on Federal Reserve Chair Jerome Powell, stating he would "love to fire him" and is even considering legal action. Trump accused Powell of "gross incompetence," particularly in relation to a costly renovation project at the central bank.
Trump's Fiery Accusations and Legal Threats
Speaking at a press conference alongside Israeli Prime Minister Benjamin Netanyahu, Trump did not mince words. He explicitly stated he was "thinking about bringing a suit against Powell for incompetence." Linking this threat to an ongoing renovation at the Federal Reserve, Trump claimed, "It's gross incompetence against Powell. And it was his baby," alleging that the Fed chief allowed costs to spiral out of control.
The former president, who appointed Powell during his first term, said the Fed Chair "should resign" and that doing so would be "a favor to the nation." With Powell's term nearing its end, Trump remarked, "I would fire him. I'd love to fire him. But we're so close, you know." He later added, while at his Mar-a-Lago resort, "Maybe I still might."
A Successor in the Wings? Announcement Expected Soon
Trump confirmed that he has a preferred candidate to succeed Jerome Powell but is not rushing to reveal the name. When questioned, he responded, "I do, still do — hasn't changed. I'll announce him at the right time. There's plenty of time." He indicated that the announcement would likely come "sometime in January."
While Trump did not disclose his top choice, several names are circulating in political and financial circles. National Economic Council Director Kevin Hassett is widely considered a frontrunner. Other potential candidates include former Fed governor Kevin Warsh, current Fed governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder, as per a Bloomberg report.
Trump has sent mixed signals about the selection process, at times suggesting he had narrowed it down to one person before later indicating he was still evaluating multiple options.
History of Criticism and Market Reactions
Trump, a long-time critic of the Federal Reserve's monetary policy under Powell, has repeatedly argued that the central bank should cut interest rates more aggressively to reduce borrowing and mortgage costs. Although the Fed lowered rates at its last three meetings in 2023, policymakers signaled in December that only one rate cut is likely in 2026.
Trump revealed that he came close to seeking Powell's removal in July but backed off after financial markets reacted negatively. This admission highlights the delicate balance between presidential criticism of the ostensibly independent Federal Reserve and the potential for market volatility.
The ongoing public dressing-down of the Fed Chair by a leading presidential candidate sets the stage for significant uncertainty regarding US monetary policy leadership in the coming year.
