During the NATO summit in the Netherlands, Donald Trump confirmed he is actively reviewing candidates to replace Jerome Powell as chair of the Federal Reserve, whom he once again referred to as 'a very stupid person.'
Trump Criticizes Jerome Powell
As Powell testified on Capitol Hill for a second day, Trump reiterated his criticism of the Fed chair. 'He’s an average mentally person… Low IQ for what he does,' Trump stated. 'I think he’s a very stupid person, actually.'
Powell Defends His Stance on Rates
During his Senate testimony, Powell emphasized that the Fed is not prepared to cut rates yet. He warned of potential inflationary effects stemming from Trump's tariff policies, stating, 'Most forecasters expect a fairly substantial wave of price increases to come through to the consumer.' While some Senate Republicans pressed for swift action, Powell maintained a cautious approach.
Trump Seeks New Candidates for Fed Chair
Despite legal restrictions preventing Trump from firing Powell outright, he has indicated he is already interviewing potential replacements. 'I know within three or four people who I’m going to pick,' Trump mentioned, listing Treasury Secretary Scott Bessent and former Fed Governor Kevin Warsh among the candidates.
As debates over interest rates and inflation intensify, the conflict between Trump and Powell continues to escalate, with Trump actively searching for replacements for the soon-to-be vacant position.
