Trump hints at Powell’s dismissal ahead of new Fed Chair selection

US President Donald Trump

US President Donald Trump hinted that he is not ruling out firing Federal Reserve Chairman Jerome Powell, while confirming that he has a preferred candidate to head the central bank, with an announcement expected in January.

Trump said during a press conference held at his Mar-a-Lago resort in Florida on Tuesday morning that he still has a preferred candidate to head the Federal Reserve.

However, he noted he was in no hurry to announce it, and at the same time, he escalated his tone towards Powell, saying he should have resigned, and indicated that he was still considering the possibility of firing him, after he had backed down from a similar move last July following negative reactions in the financial markets.

Trump also revealed that he is considering filing a lawsuit against Powell for gross incompetence over an ongoing renovation project at the Federal Reserve.

Powell's term ends in May 2026, while his membership on the board of governors extends until 2028. This could limit Trump's ability to appoint a replacement who supports his interest rate-cutting ambitions should Powell decide to remain on the board after his presidency term ends.