Trump Eyes Powell’s Replacement as Interest Rate Clash Intensifies

Former President Donald TRUMP is preparing for a potential overhaul at the Federal Reserve as Jerome Powell’s term nears its 2026 expiration. Trump has narrowed his list of candidates to three or four names, signaling a stark departure from Powell’s monetary policy. The former president has publicly criticized Powell’s stance on interest rates, labeling it as weak leadership amid cooling inflation and booming tariff revenues.

Trump’s frustration reached new heights during a NATO summit, where he called Powell "very stupid" and "terrible," blaming the Fed chair’s reluctance to cut rates for costing taxpayers hundreds of billions in additional debt payments. Trump insists rates should plummet to 1%-2%, far below the current 4.25%-4.5% range, and claims the U.S. is overpaying by up to $900 billion annually due to Powell’s inaction.

The standoff isn’t merely personal—it’s a battle over economic direction. Trump views Powell’s resistance as a threat to both national prosperity and his political agenda. With replacement plans already in motion, Trump is pushing for a Fed chair who will aggressively slash rates, regardless of inflationary risks.