Trump Stays with Powell as Fed Chair, Calls for Lower Interest Rates

In a recent interview, former U.S. President Donald Trump stated that he will not replace Jerome Powell as the Chairman of the Federal Reserve before Powell’s term ends in May 2026. Trump described Powell as someone who lacks charisma and said, “He’s a total stiff.” Despite this, Trump believes Powell should lower interest rates.

During the chat on NBC’s “Meet the Press,” Trump emphasized that Powell has not been a supporter but expressed his hope that the interest rates would go down eventually. Trump said he wouldn’t remove Powell because he will be able to pick a new chairman soon enough and asked, “Why would I do that?”

Recently, stock prices fell sharply after Trump criticized Powell, which worried investors about the Central Bank’s independence. However, Trump’s latest comments suggest he might keep Powell on board, which could calm nervous investors worried about his hefty tariffs.

Trump has placed tariffs—extra taxes—on various imports, including a 10% tariff on many countries and higher rates on cars, steel, and aluminum. He is currently working with over 15 countries to negotiate trade deals that might help reduce these tariffs soon.

When asked about making these tariffs permanent, Trump said he wouldn’t because companies need certainty to invest in the U.S. He also highlighted his tough stance on China, suggesting that China is eager to reach a fair deal as they haven’t been trading with the U.S. lately. “We’ve gone cold turkey,” he explained, referring to the lack of trade and how it helps the U.S. economy. Trump concluded by saying he’s optimistic about a fair trade deal.