President-elect Donald Trump stated in an interview aired Sunday that he does not plan to replace Federal Reserve Chair Jerome Powell upon taking office in January. “No, I don’t think so. I don’t see it,” Trump told NBC’s Meet the Press when asked if he would seek Powell’s removal before his term ends in 2026. However, Trump hinted at potential friction, saying, “I think if I told him to [go], he would. But if I asked him to, he probably wouldn’t.”
Trump campaigned on lowering borrowing costs for U.S. households, raising the possibility of renewed clashes with Powell over interest rate policy. He has also pledged to implement across-the-board tariffs, which could complicate the Federal Reserve’s efforts to manage inflation.
Powell, whose tenure as Fed Chair began in 2018 after being appointed by Trump, has already stated he would not leave office early, arguing such a move is not legally permitted. Trump had previously criticized Powell during his first term, particularly over rate hikes and decisions during the early COVID-19 pandemic. At one point, Trump privately discussed firing Powell and publicly argued against the Fed’s interest rate increases.
Trump’s criticisms broke from decades of precedent where presidents refrained from interfering with the Federal Reserve’s legal independence. Earlier this year, Trump expressed a desire to influence Fed decisions, signaling potential challenges to its autonomy.
The Federal Reserve is expected to cut interest rates at its Dec. 17-18 policy meeting, following signs of a cooling labor market. A quarter-point reduction could lower the policy rate to 4.25%-4.50%, marking a continued easing cycle from September’s peak.
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