During his meeting with Philippine President Ferdinand Marcos Jr President Donald Trump announced that Federal Reserve Chair Jerome Powell will leave his position within eight months thus sparking fresh criticism about central bank leadership because of ongoing rate disagreements. Trump described Powell as a “numbskull” when he met with reporters to express his criticism about Powell’s decision to maintain high interest rates.
The official end of Powell’s term as Federal Reserve Chair occurs in May 2026 but Trump’s eight-month timeline implies he might seek Powell’s removal before March. The Fed chair has consistently declared his plan to fulfill his complete term as chair.
The current interest rates are too high according to Trump who has continuously advocated for lower borrowing costs because they restrict housing affordability and economic growth. The Federal Open Market Committee maintains a 4.25%–4.50% interest rate forecast for the upcoming week.
Treasury Secretary Scott Bessent joined Trump in criticizing the Fed by pointing out its “mission creep” while expressing doubts about the $2.5 billion Washington building renovation project.
The administration faces mounting pressure on Powell because they remain dissatisfied with monetary policy decisions despite economic growth and ongoing inflation. Trump initiated internal evaluations of Federal Reserve operations to demonstrate his strong commitment toward transforming both the central bank’s functions and its spending allocation.
