- Trump called Powell “grossly incompetent” and expressed desire to fire him over high interest rates.
- He criticized Treasury Secretary Scott Bessent for delaying rate reductions and urged faster action.
- Remarks coincided with October FOMC minutes showing Fed officials divided on future rate cuts.
At Wednesday’s U.S.-Saudi Investment Forum in Washington, D.C., President Donald Trump openly criticized Federal Reserve Chair Jerome Powell. He accused Powell of incompetence, claimed he had “mental problems,” and said he would “love to fire his ass.” The remarks came hours after October FOMC minutes showed market uncertainty over future rate cuts.
Direct Criticism of Powell and the Fed
Trump repeatedly targeted Powell for keeping interest rates high, asserting the Fed’s policies hurt economic growth. He criticized Treasury Secretary Scott Bessent, saying Bessent’s intervention was delaying a resolution.
“The only thing Scott’s blowing it on is the Fed. The rates are too high, Scott, and if you don’t get it fixed fast, I’m gonna fire your ass,” Trump said. He emphasized the urgency of immediate action to reduce rates, underscoring his frustration with the central bank.
Trump also referenced conversations with Bessent, who reportedly asked him not to remove Powell before his term ends in May 2026. “Sir, please don’t fire him. He’s got three months to go,” Trump recounted. Commerce Secretary Howard Lutnick, according to Trump, favors removing Powell sooner, adding tension within the administration.
Timing and Market Context
The remarks coincided with the release of the Fed’s October meeting minutes, which revealed central bank officials were divided on further rate cuts. The FOMC had approved a 0.25% reduction to an overnight rate range of 3.75%–4%. Trump’s public critique follows previous comments in which he said people were preventing him from firing Powell and highlighted ongoing efforts to identify a successor.
Trump’s comments directly tied U.S. Treasury officials to the rate debate, stressing both urgency and personal responsibility. White House spokesperson Kush Desai told CNBC that the administration remains confident in Bessent while actively searching for a competent Fed replacement.
The event showed Trump’s ongoing public confrontation with the Federal Reserve, emphasizing his frustration over interest rate policies. His remarks mixed with personal criticism, cabinet dynamics and central bank scrutiny in a rare, direct public airing of grievances.
