Donald Trump Unleashes Fury on Fed Chair Powell: ‘Terrible’ Leadership Sparks Talk of Replacement!
US President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell during a NATO summit on June 26, branding him “terrible” and hinting at a list of potential successors. Speaking to reporters in The Hague, Trump stated, “I know within three or four people who I’m going to pick,” when asked if he was considering candidates to replace Powell. Although he had previously claimed he would not oust Powell, his ongoing public attacks raise questions about the Fed Chair’s future.
According to Reuters, potential contenders for the role include former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller, and Treasury Secretary Scott Bessent. Hassett remained tight-lipped when asked whether he had discussed the prospect of taking over with Trump, merely stating, “I think the President will choose the person that he likes, and it’s not going to be Jay Powell.”
During a separate congressional testimony on June 25, Powell addressed concerns about inflation, acknowledging that recent inflation figures were more moderate than anticipated. However, he cautioned that new tariffs could alter this trend. “Higher tariffs could push up inflation this summer,” Powell warned a Senate panel. While he noted that tariffs often result in temporary price shocks, he acknowledged that such outcomes aren’t guaranteed. “If it comes in quickly and is over and done, then yes, very likely it is a one-time thing,” he explained. “But it is a risk we feel. As the people who are supposed to keep stable prices, we need to manage that risk.”
The Federal Reserve has maintained its benchmark interest rate between 4.25% and 4.5% since December, with many anticipating rate cuts later this year. However, Powell underscored the need for clarity regarding inflation before any decisions about rate adjustments can be made. “We should start to see this over the summer, in the June number and the July number,” he remarked. “If we don’t, we are perfectly open to the idea that the pass-through [of tariffs to consumers] will be less than we think — and if we do, that will matter for policy.”
Republican lawmakers pressed Powell during back-to-back hearings this week, questioning the delay in rate cuts. Powell defended the Fed’s cautious stance by pointing to the uncertain inflation trajectory due to rising import tariffs. “The effects of tariffs could be large or small. It is just something you want to approach carefully,” he told senators, echoing broader concerns about the economic impact.
As pressure mounts on Powell and the Federal Reserve, the outcome of Trump’s critiques and potential leadership changes could significantly shape U.S. economic policy in the coming months. The dialogue surrounding inflation, interest rates, and trade continues to be pivotal as legislators evaluate the best path forward for a balanced economy.
Original Source: https://www.livemint.com/news/us-news/donald-trump-slams-fed-chair-powell-as-terrible-hints-at-replacement-i-know-three-or-four-people-11750882798101.html
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Publish Date: 2025-06-26 02:26:00
