Trump Says He Won’t Fire “Numbskull” Powell, But Demands Rate Cuts

President Trump said he did not plan to fire Fed Chair Jerome Powell, days after saying he would “soon” pick his nominee – to lead the central bank next, with Polymarket odds suggesting Hassett, Warsh and Bessent are favorites to replace Powell.

“The fake news is saying, ‘Oh, if you fired him, it would be so bad, it would be so bad.’ I don’t know why it would be so bad, but I’m not going to fire him,” Trump said at a White House event on Thursday.

Trump went on to reiterate his complaints that the Fed has not moved quickly enough to cut interest rates, as more evidence emerged of cooling inflation. Powell’s term as chair expires in May 2026.

Trump went on to complain that “we’re going to spend $600 billion a year because of one numbskull that sits here, ‘I don’t see enough reason to cut the rates now.’… Cut your rates now, there’s no inflation.”

President Trump calls Federal Reserve Chair Jerome Powell a “numskull” for not lowering interest rates but says he won’t fire him. pic.twitter.com/VwydtLM673

— CSPAN (@cspan) June 12, 2025

“We call him ‘Too Late,’ right?” Trump said, adding he was frustrated that the current rates were increasing the federal government’s borrowing costs. The president said the Fed could always increase rates if inflation returned.

“Let’s say there was inflation. In a year from now, raise your rates. I don’t mind, raise your rates. I’m all for it. I’ll be the one to be calling you,” Trump said. “He’ll be too late for that too.”