Will Jerome Powell Resign? Donald Trump Says Federal Reserve Chair Will Be Gone Soon, Calls Him A ‘Numbskull’

US President Donald Trump on Tuesday heightened this criticiism of Federal Reserve Chair Jerome Powell, calling him a “numbskull” for keeping interest rates too high threatning he will be gone soon. 

Jerome Powell’s Term Set to End in May 2026

Trump was speaking at a White House while meeting with Philippine President Ferdinand Marcos Jr., saying, Powell would be out of his position in eight months.

“I think he’s done a bad job, but he’s going to be out pretty soon anyway. In eight months, he’ll be out,” Trump told reporters.

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The current term of Federal Reserve chair, Powell will officially end on May 15, 2026. He has reiterated that he has no plans to leave the post early makinfg Trump  more angry.

However, Trump’s has now made comments suggesting Powell will leave in eight months points to mid-March 2026, though it was not immediately clear why the president referred to that particular timeframe.

Donald Trump And  Jerome Powell Longstanding Feud Over Interest Rates

Over the past few months, Trump has openly criticized Powell for the Federal Reserve’s decision of not to cut interest rates. POTUS has even often floated the idea of removing Powell from his position, although he has also said firing him would be “unlikely.”

In recent weeks, the Trump administration has intensified its pressure on the Fed while openly  atatclking Powell.

 White House launched an investigation of Fed’s renovation of two buildings in Washington. It alleged that the projects are lavish and did not follow planning procedures, which however was rejected by the Federal Reserve.

Treasury Secretary Scott Bessent on Tuesday called again for “a big internal investigation” into the Fed’s non-monetary policy operations.

Economists Warn of Risks to Fed Independence

Many economists have expressed concern that the Trump administration’s ongoing efforts to influence the Federal Reserve could undermine its independence. They warn that pushing the central bank to ease monetary policy could have the opposite of the intended effect.

Analysts point to examples like Argentina and Zimbabwe, where political interference in central bank decision-making contributed to hyperinflation.

Some experts believe financial markets are already showing signs of losing confidence in the Fed’s ability to achieve its dual mandate of price stability and maximum employment.

Donald Trump: Rates Should Be 3 Points Lower

President Trump reiterated on Tuesday that he believes interest rates should be 3 percentage points lower than their current level.

The Federal Reserve’s policy-setting Federal Open Market Committee is expected to keep the federal funds rate in its current range of 4.25% to 4.50% when it meets next week. Policymakers are waiting to assess how inflation and employment respond to new tariffs before making changes.

“Our economy is so strong now, blowing through everything. We’re setting records,” Trump said. “But you know what? People aren’t able to buy a house because this guy is a numbskull. He keeps the rates too high, and is probably doing it for political reasons.”

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