Trump Explains Why He Is Keeping Jerome Powell ‘For Now’

Trump’s Stance on Jerome Powell Remains Uncertain

During an appearance on Newsmax’s “Finnalty” on Friday, President Donald Trump indicated he hasn’t completely ruled out Federal Reserve Chairman Jerome Powell, despite previously suggesting he should step down for allegedly “disturbing the market.”

The tension between Trump and Powell escalated following the president’s announcement of major tariffs back in April. Powell expressed concerns about the potential impact of these tariffs on the U.S. economy. Rob Finnerty from Newsmax pressed Trump on why he hasn’t removed Powell from his role.

“They say it’ll disrupt the market,” Trump responded. “I’d probably remove him in a heartbeat, but they say it could affect things. He’ll be out in seven or eight months anyway, and then I’ll appoint someone else.”

Trump has consistently urged Powell to lower interest rates, linking it to his administration’s tariff successes. In June, during the Fed’s fourth meeting of the year, it was announced that the target interest rates would remain between 4.25% and 4.5%. There are conflicting reports on this; for example, Powell mentioned that the Fed would have likely cut rates by now if not for the tariffs imposed by Trump.

During the interview, Finnerty continued to inquire whether Powell could be removed for “cause,” referencing the new headquarters project that reportedly costs over $2 billion.

“He’s investing $2.9 billion in renovations and a new building,” Trump remarked. “I probably know more about buildings than anyone else. That’s a lot of money.”

Trump expressed concern over the spending, suggesting that it seemed excessive, as if Powell were constructing a palace for himself. He added, “He shouldn’t be spending that kind of money. It’s over hundreds of millions. It sounds like he won’t need it anyway.”

In response to a call for an inquiry, Powell has called for an evaluation of the Fed’s headquarters project after accusations of its extravagance. Meanwhile, Republican Rep. Anna Paulina Luna has called for a Justice Department investigation into Powell regarding alleged perjury related to this project.

When Finnerty asked if Powell would remain in his position, Trump replied, “That’s very destructive. So it’s probably likely he won’t stay long.”

In a recent press conference, a reporter questioned Powell about the Fed’s decision not to lower interest rates despite rising mortgage prices. Powell noted that “Housing is a special case” and clarified that the Fed does not set mortgage rates.