Washington, D.C. – June 12, 2025
Former U.S. President and 2024 Republican frontrunner, Donald J. Trump, made headlines once again as he publicly addressed ongoing rumors regarding his stance on Jerome Powell, the current Chairman of the Federal Reserve. In a clear and direct statement given during a press event at the White House, Trump announced, “I have no intention of firing Jerome Powell.”
This declaration comes amid growing speculation about Powell’s future in the Federal Reserve under a potential second Trump administration. Many observers had previously interpreted Trump’s past criticisms of Powell’s monetary policy decisions as indicators that he may seek to replace the Fed Chair.
Context Behind the Controversy
The relationship between Donald Trump and Jerome Powell has historically been tense. During Trump’s first presidency (2017–2021), Powell was frequently a target of Trump’s frustrations, particularly when the Federal Reserve did not cut interest rates as aggressively as the administration desired. Trump, known for favoring low interest rates to stimulate economic growth and bolster the stock market, repeatedly used social media and public speeches to express dissatisfaction with Powell's leadership.
Despite this history, Powell remained in office throughout Trump’s term. In 2018, Trump even considered firing Powell a move that would have challenged the independence of the U.S. central bank and potentially triggered a constitutional crisis. That action was never taken, but the friction was well documented.
June 2025 Clarification
On June 12, 2025, Trump directly responded to renewed speculation, prompted by various media outlets reporting that he might remove Powell if reelected. Standing beside Powell during an economic policy announcement, Trump addressed the press:
> “Fake news sources are saying, ‘Oh, if you fire him, it’s going to be very bad, very bad.’ I don’t know why it would be bad but I’m not going to fire him.”
This explicit denial marked a rare moment of support for Powell from Trump, even if it came couched in his characteristic combative tone toward the media.
Previous Hints at Change
Although Trump now confirms he will not fire Powell, it is worth noting that he had previously alluded to the possibility of appointing a new figure to lead the Fed. Sources close to his campaign had floated names of alternative candidates who might align more closely with Trump’s views on interest rates, inflation, and dollar strength.
Powell’s current term as Fed Chair is set to run through 2026, and while Trump cannot directly terminate a sitting Fed Chair without cause, he could opt to not reappoint him. That said, Trump’s most recent comments suggest a degree of political calculation aimed perhaps at projecting stability and appealing to financial markets and institutional investors.
Reactions from the Financial Community
Markets responded positively to Trump’s statement. The Bloomberg Terminal reported a temporary bump in bond yields and a modest gain in banking stocks, as investors interpreted the news as a sign of policy continuity and central bank independence.
Wall Street analysts noted that maintaining Powell in his role could offer reassurance amid current economic uncertainty. The Fed continues to navigate a complex post-pandemic environment with inflationary pressures, geopolitical tensions, and an evolving labor market.
Conclusion: Strategy or Reconciliation?
While Trump’s declaration may come as a surprise to those expecting a shake-up at the Fed, it also signals a strategic pivot. Whether this is a sign of Trump softening his stance or simply a tactical move to maintain market confidence remains unclear.
What is certain, however, is that Powell retains his position for now and Trump, despite years of acrimony, has opted to preserve the current leadership at the most powerful central bank in the world.
As the 2024 U.S. election cycle intensifies, the future of the Federal Reserve, like many other institutions, may hinge on the political decisions yet to be made. But for the moment, Jerome Powell has received a rare vote of confidence from the man who once wanted him gone.