His comments came hours after US Treasury Secretary Scott Bessent told Bloomberg TV that the White House had formally begun the process of selecting a successor to Powell. “There are a lot of great candidates. And we’ll see how rapidly it progresses. It’s President Trump’s decision and it will move at his speed,” Bessent said.
Also Read: ‘Jerome Powell is going to be fired’, says Republican Congresswoman Luna as Trump pressurises Fed chairPresident Trump has repeatedly criticised Powell in recent months, calling him “very dumb” and a “major loser” while demanding immediate and steep interest rate cuts. Last week, Trump posted a handwritten note to Powell on social media that read, “You have cost the USA a fortune and continue to do so. You should lower the rate – by a lot!”
Powell, meanwhile, has pointed to Trump’s tariff policies as one of the reasons the Fed has delayed rate cuts, warning that protectionist measures could stoke inflation. US inflation rose to 2.7% in June from 2.4% a month earlier, according to official data published on Tuesday.
Despite the pressure, Powell has received public support from global central bankers. He was given a round of applause earlier this month at a European Central Bank conference in Sintra, Portugal, when asked about Trump’s repeated attacks.
While Bessent insisted that Trump is not planning to fire Powell, Kevin Hassett, the president’s top economic adviser and a potential contender for the Fed chair role, recently said that removing Powell was “being looked into”.
Trump’s previous criticism of Powell had already rattled markets earlier this year, contributing to a bond market selloff in April. The turmoil prompted a 90-day pause on planned tariffs – a deadline now extended from July 9 to August 1.
