Trump says he won’t fire Powell, but again demands rate cut

President Donald Trump reiterated Thursday he did not plan to fire Federal Reserve Chair Jerome Powell, days after saying he would “soon” pick his nominee to lead the central bank next.

“The fake news is saying, ‘Oh, if you fired him, it would be so bad, it would be so bad.’ I don’t know why it would be so bad, but I’m not going to fire him,” Trump said at a White House event on Thursday.

Trump went on to repeat his complaints that the Fed has not moved quickly enough to cut interest rates, as more evidence emerged of cooling inflation. Powell’s term as chair expires in May 2026.

“We call him ‘Too Late,’ right?” Trump said, adding he was frustrated that current elevated rates were increasing the federal government’s borrowing costs. The president said the Fed could always raise rates if inflation returned.

“Let’s say there was inflation. In a year from now, raise your rates. I don’t mind, raise your rates. I’m all for it. I’ll be the one to be calling you,” Trump said. “He’ll be too late for that too.”

The Supreme Court last month shielded the Fed from Trump’s push to fire top officials at independent agencies, calling the central bank a “uniquely structured, quasi-private entity.” 

The decision provided a measure of clarity about Powell’s job security, after Trump sent conflicting signals about whether he would try to oust the Fed chief before his term expired. Trump said in April he had no intention of firing Powell.

Fed officials are expected to hold interest rates steady at their two-day policy meeting next week. Powell and his colleagues have signaled they are waiting for more clarity on how Trump’s policy changes — including on tariffs, taxes and immigration — could affect the economy before adjusting interest rates again. 

This story was originally featured on Fortune.com