WASHINGTON: US President Donald Trump on Tuesday (Jul 22) said Federal Reserve Chair Jerome Powell would be out of his role in eight months, calling him a “numbskull” for keeping interest rates too high and suggesting political motives behind Fed policy.
“I think he’s done a bad job, but he’s going to be out pretty soon anyway. In eight months, he’ll be out,” Trump said during a meeting at the White House with Philippine President Ferdinand Marcos Jr.
Powell’s term as Fed chair runs until May 15, 2026. Trump did not explain why he believed Powell would leave in mid-March, roughly eight months from now, and Powell has repeatedly stated he will not resign early.
RATE PRESSURE
Trump has repeatedly criticised Powell for maintaining elevated interest rates despite cooling inflation, arguing they are hindering consumer access to credit.
On Tuesday, he reiterated that interest rates should be three percentage points lower than the current level.
“Our economy is so strong now, blowing through everything. We’re setting records,” Trump said. “But you know what? People aren’t able to buy a house because this guy is a numbskull. He keeps the rates too high, and is probably doing it for political reasons.”
The Federal Open Market Committee meets next week and is widely expected to keep rates steady in the 4.25% to 4.50% range, as officials assess the impact of tariffs on inflation and employment.
