President Donald Trump openly mused Wednesday about naming himself head of the Federal Reserve, while once again lashing out at current Fed Chair Jerome Powell.
“We have a stupid person, frankly, at the Fed,” the president said while speaking to reporters outside the White House. “I call him ‘Too Late’ Powell, because he’s always too late.”
The president has grown increasingly frustrated with the Fed’s refusal to bow to his demands to slash interest rates.
“Maybe I should go to the Fed,” he wondered, glancing toward Interior Secretary Doug Burgum. “Am I allowed to appoint myself Doug? I don’t know.”
He then repeated his new idea: “Am I allowed to appoint myself at the Fed? I’d do a much better job than these people.”
America’s central bank on Wednesday opted to keep interest rates unchanged at 4.3 percent—which is where they’ve been since January, much to the dismay of Trump, who is hoping for lower rates to juice economic growth amid turmoil from his trade wars.
He sparked panic in financial markets, which depend on the central bank’s independence from political meddling, in April, when he called for Powell to be removed before his term expires next year.
The Supreme Court later went out of its way to note that Trump cannot legally remove Powell, who was first appointed to his post by Trump in 2017.
The Fed has been reluctant to cut rates due to the uncertainty surrounding Trump’s erratic tariff policy. At a news conference Wednesday, Powell said Trump’s tariffs are “likely to push up prices and weigh on economic activity.” The Fed expects inflation to rise from 2.1 to 3 percent by year’s end, though Powell noted the full impact will depend on how large and long-lasting the tariffs are.
However, the central bank kept its forecast for two rate cuts later this year, with Powell noting that the economy is expanding at “a solid pace.”
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