Trump Considers Removing Powell Over Fed Policy, Says Kevin Hassett

To protect the American economy and taxpayers, President Donald Trump is reportedly considering removing Federal Reserve Chair Jerome Powell from his position, according to recent reports. The President’s frustration with Powell stems from the Fed’s failure to lower interest rates, a move Trump argues could save the country trillions of dollars in interest costs on debts.

Trump has been vocal about the need for lower interest rates, pointing out that the Fed’s current benchmark rate of 4.25 to 4.5 percent is significantly higher than rates in other nations like Japan, Denmark, Cambodia, and Switzerland, which range between 0.25 and 1.75 percent. In a recent Truth Social post, the President stated, “If they were doing their job properly, our Country would be saving Trillions of Dollars in Interest Cost. The Board just sits there and watches, so they are equally to blame. We should be paying 1 percent Interest, or better!” Fox Business Reported.

The President’s economic vision is clear: by reducing interest rates, the U.S. could alleviate the financial burden on the government, businesses, and citizens, unlocking new opportunities for growth. Trump has estimated that the current high rates are costing the U.S. $360 billion per percentage point annually in refinancing costs, a figure he cited in a July 9 Truth Social post: “The current Fed rates are AT LEAST 3 Points too high. Powell is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing costs.”

The White House is actively exploring whether Trump has the authority to fire Powell, with Kevin Hassett, director of the National Economic Council, confirming in a July 13 interview with ABC News that such an investigation is underway. “That’s a thing that’s being looked into. But certainly, if there’s cause, he does,” Hassett said NBC News. This development signals the administration’s determination to hold the Fed accountable for what Trump sees as economic mismanagement.

Trump’s criticism of Powell is not new. For months, the President has accused the Fed of failing to act in America’s best interest. In a June 30 Truth Social post, Trump wrote, “The Fed has one of the easiest, yet most prestigious, jobs in America, and they have FAILED — And continue to do so.” He has also pointed to the Fed’s $2.5 billion headquarters renovation, which is already $700 million over budget, as evidence of mismanagement. Russell Vought, director of the Office of Management and Budget, recently echoed these concerns, criticizing Powell’s oversight of the project USA Today.

Despite these criticisms, Powell has defended the Fed’s cautious approach, citing concerns about inflation. After the central bank’s June 18 meeting, Powell stated, “Inflation continues to be somewhat elevated relative to our 2 percent longer-run goal.” He also noted that the impact of Trump’s tariffs on inflation might take time to materialize, suggesting that the Fed is waiting for clearer economic signals before adjusting rates The Guardian. Some Fed members have even indicated that the key interest rate may remain unchanged throughout 2025, further highlighting the divide between the administration and the central bank Investopedia.

The potential removal of Powell has sparked concerns in financial markets. ING Bank warned that if Powell is removed or resigns before his term ends in May 2026, it could trigger a “new round of severe downward volatility” in the U.S. dollar, with initial sell-offs in long-dated Treasuries Fortune. Deutsche Bank went further, suggesting that such a move could lead to a collapse in both the currency and bond markets. These warnings underscore the high stakes of Trump’s potential decision, though the President remains focused on prioritizing economic relief for Americans.

Trump’s push for lower interest rates reflects his unwavering commitment to economic growth and fiscal responsibility. By challenging Powell and the Fed, the President is taking a stand against bureaucratic inertia and demanding accountability from those entrusted with managing the nation’s economy. His supporters view this as a bold move to prioritize American prosperity, particularly in light of the Fed’s perceived inaction and costly projects like the headquarters renovation.

The President has also signaled his intent to appoint a new Fed Chair who aligns with his vision for lower rates. On June 27, Trump told reporters at the Oval Office that any replacement for Powell would be “somebody that wants to cut rates,” reinforcing his focus on reducing financial burdens CNN reported.

The tension between Trump and Powell has reignited discussions about the Federal Reserve’s independence. Critics argue that undermining the Fed’s autonomy could have long-term consequences for economic stability, while Trump’s supporters contend that the Fed’s current policies are already harming the economy. The administration’s accusations that Powell is slow-walking rate cuts due to misplaced fears about tariff-induced inflation have further fueled this debate POLITICO reported.

As the debate unfolds, one thing is clear: President Trump is not afraid to take bold action to protect the nation’s economic future. Whether Powell remains in his position or not, Trump’s leadership ensures that America’s interests come first. His vision for lower interest rates could save taxpayers trillions and unleash new opportunities for businesses and families across the country, positioning the U.S. for a stronger economic future.