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- President Donald Trump has sharply criticized Federal Reserve Chair Jerome Powell, calling him “incompetent” and confirming that he plans to replace him when his term...
- Trump made the remarks during a meeting with business leaders in Tokyo, where he is attending a series of international economic discussions.
- The statement marks Trump’s most direct criticism of Powell since returning to political prominence.
- He accused the current Fed chief of mismanaging monetary policy and “hurting the American economy through unnecessary delays in rate cuts.”
U.S. President Donald Trump has sharply criticized Federal Reserve Chair Jerome Powell, calling him “incompetent” and confirming that he plans to replace him when his term ends in May 2026. Trump made the remarks during a meeting with business leaders in Tokyo, where he is attending a series of international economic discussions.
The statement marks Trump’s most direct criticism of Powell since returning to political prominence. He accused the current Fed chief of mismanaging monetary policy and “hurting the American economy through unnecessary delays in rate cuts.”
Trump’s economic team has already prepared a shortlist of five potential candidates to replace Powell. The names include Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder.
A formal recommendation is expected to be made by December, giving Trump time to finalize his choice ahead of Powell’s term expiry next spring.
The president also revealed that he initially considered Treasury Secretary Scott Bessent for the role, but Bessent declined to be nominated.
Trump’s criticism comes at a time when the Federal Reserve is widely expected to reduce short-term interest rates later this year due to a slowdown in the U.S. labor market and moderate inflation trends. Powell, who was first appointed by Trump in 2018 and later reappointed by President Biden, has maintained that the Fed’s decisions are guided strictly by data, not politics.
Analysts say Trump’s comments could increase political pressure on the central bank as it navigates decisions in an election-influenced environment.
The debate over the Fed’s leadership arrives amid a shifting global economic landscape, with the U.S. economy showing signs of softening growth and weaker job numbers. Trump’s remarks underline his long-standing criticism of Powell’s cautious approach to monetary easing.
If replaced, Powell would become one of the few Fed chairs in U.S. history not to complete two full terms.
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