President Donald Trump has once again turned up the heat on Federal Reserve Chairman Jerome Powell, unleashing a barrage of criticism over the central bank’s decision to keep interest rates steady and signaling that Powell’s days at the helm may soon be numbered. The latest round of attacks came during a high-profile appearance at the U.S. Saudi Investment Forum, held at the Kennedy Center in Washington, on November 19 and 20, 2025, where Trump did not mince words about his frustrations with Powell’s stewardship.
“Frankly, I would love to get the guy currently in there out right now, but people are holding me back,” Trump declared on November 18, according to Politico, echoing a sentiment he would repeat in even sharper terms at the investment forum the following day. There, he announced, “I’ll be honest, I’d love to fire his ass,” a statement reported by Investing.com and other outlets. These remarks are just the latest in a series of public rebukes Trump has aimed at Powell, whom he has derisively nicknamed “too late” Powell for what he sees as the Fed’s sluggish response to economic conditions.
Trump’s impatience with the Federal Reserve’s current trajectory was on full display as he publicly pressed Treasury Secretary Scott Bessent to push for faster rate cuts. “The rates are too high, Scott, and if you don’t get it fixed fast, I’m going to fire your ass,” Trump recounted, recalling a conversation with Bessent in which the Treasury Secretary urged him to allow Powell to finish his term, which runs until May 2026. Commerce Secretary Howard Lutnick, Trump joked, was “a little bit more for firing,” suggesting Lutnick would tell him to “get him the hell out.”
Trump’s criticism of Powell is not new, but it has intensified as the end of Powell’s term draws near. According to Just the News, Trump has repeatedly accused Powell of hesitating to cut interest rates, blaming him for what he perceives as unnecessarily high borrowing costs that could dampen economic momentum. At the Kennedy Center event, Trump doubled down, telling Bessent, “You’ve got to work on him, Scott. The only thing Scott’s blowing it on is the Fed.” He also accused Powell of incompetence and mismanagement, particularly regarding a costly renovation project at the Fed—a claim Powell has refuted, arguing Trump is conflating costs from a separate central bank office completed five years ago.
The president’s authority to unilaterally fire the Fed chair remains a matter of legal debate, but there’s little doubt that Trump will have the opportunity to shape the central bank’s leadership soon. Powell’s term as chair expires in May 2026, during Trump’s current presidency, giving the White House the prerogative to name a successor. As Investing.com reported, the process of selecting Powell’s replacement is already well underway. Last month, Bessent confirmed the list of candidates had been narrowed to five: Fed Governors Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder.
Bessent, who is heading up the search, told Fox News on November 19 that Trump is expected to meet with the three finalists after Thanksgiving, with a new Fed chair likely to be announced before Christmas 2025. Trump himself has acknowledged that Bessent, despite the president’s repeated praise, “does not want the job.” “We have great names under consideration,” Trump said at the forum, according to Investing.com, and Bessent has confirmed he’s not a candidate.
The White House, meanwhile, has tried to tamp down speculation that Trump’s barbs at Powell and Bessent signal deeper discord within the administration. In a statement, the administration said it maintained “complete confidence” in Bessent and reaffirmed Trump’s “search for a new – and competent – chairman of the Federal Reserve.”
Markets are watching the drama closely. According to Adam Crisafulli of Vital Knowledge, investors are already handicapping the race to replace Powell. “Trump could name his Powell replacement at any moment,” Crisafulli told Investing.com. While several names have surfaced in media reports, markets view Hassett, Warsh, and Waller as the true shortlist. Crisafulli suggested that “Hassett [is] the most likely person to get the nod,” but added that Waller “would be the best-case outcome” for markets. Despite the leading candidates’ dovish leanings on interest rates, Crisafulli noted they are generally more hawkish on the Fed’s balance sheet—meaning that while rate cuts may come, the new chair could be more reluctant to deploy the central bank’s financial firepower in a future crisis.
All eyes are now on the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for December 10, 2025. Crisafulli sees two plausible outcomes: a rate cut, which could further expose divisions within the committee, or unchanged rates accompanied by more dovish messaging and less acrimony. “Of the two scenarios, the latter would be the ideal outcome for equities,” he concluded.
Trump’s rhetoric has sparked renewed debate about the independence of the Federal Reserve, a principle traditionally seen as crucial for maintaining market confidence and insulating monetary policy from political pressures. Yet, Trump’s willingness to publicly browbeat both Powell and his own cabinet members over interest rates has put that independence to the test. Supporters of the president argue that the Fed has been too slow to respond to changing economic conditions, with one administration official telling Just the News that “Powell’s hesitation on rates is costing American businesses and families.” Critics, however, warn that undermining the Fed’s autonomy could backfire, eroding trust in U.S. financial institutions and potentially destabilizing markets.
For Powell, the final months of his term are shaping up to be anything but quiet. While he has steadfastly defended the Fed’s decisions and insisted that the central bank’s renovation project is not the boondoggle Trump claims, the pressure from the White House is unlikely to abate. With the search for his successor accelerating and the president’s impatience on full display, the question is not if, but when, the next chapter of the Fed’s leadership will begin.
As the year draws to a close and the shortlist for Powell’s replacement solidifies, investors, policymakers, and the public alike are bracing for what could be one of the most consequential transitions at the Federal Reserve in recent memory. Whether Trump’s aggressive approach will yield the rate cuts he desires—or simply usher in a new era of volatility at the central bank—remains to be seen. But one thing’s for sure: the battle over the Fed’s future is far from over.
