At a news conference on Monday, President Trump again stated his desire to fire Federal Reserve Chair Jerome Powell, whose term expires in May 2026. Speaking alongside Israeli Prime Minister Benjamin Netanyahu at Mar-a-Lago, Trump reiterated his frustration with Powell’s handling of interest rates, calling him a “fool” and “stiff” while suggesting he might pursue a lawsuit for “gross incompetence” over issues like the Fed’s headquarters renovation. Although Trump noted he’d “love to fire him but we’re so close” to the term’s end, he stopped short of immediate action, emphasizing his preference for a successor aligned with aggressive rate reductions.

While some contenders to replace him have been floated—including economic adviser Kevin Hassett, former Fed governor Kevin Warsh, and current governor Christopher Waller—Trump has made clear he wants whoever the next head of the central bank is to continue cutting interest rates, even in a strong economy. The president has outlined a “Trump Rule” demanding lower rates when markets perform well, rejecting candidates who disagree and prioritizing those committed to deeper cuts beyond the Fed’s recent quarter-point moves. This stance comes amid three rate reductions in 2025, which Trump dismissed as insufficient, arguing the latest could have been doubled.

Trump expects to announce Powell’s replacement in January, setting the stage for a potential shift in Fed leadership that could test the central bank’s independence. With Powell’s chairmanship ending amid ongoing economic debates over inflation and growth, the incoming nominee will face pressure to deliver the president’s preferred easier monetary policy, though internal divisions and data-dependent decisions may complicate rapid changes. The remarks underscore Trump’s long-standing push for lower borrowing costs to fuel market gains and economic expansion.