Trump says he could still fire Powell as Fed chair choice looms

“Yes, that’s still the case — that hasn’t changed,” Trump said at a news conference Monday, when asked if he had a favorite candidate. “I’ll announce it at the right time. We have plenty of time.”

Trump added that Powell should resign and that he “would love to fire him.”

“Maybe I still could,” Trump told reporters at his Mar-a-Lago resort in Florida.

Trump did not specify who his leading presidential candidate was and said an announcement would be made “in January.”

National Economic Council Director Kevin Hassett is considered the favorite, although Trump has also expressed interest in former Fed Governor Kevin Warsh. Other finalists in the process include current Fed governors Christopher Waller and Michelle Bowman, as well as BlackRock’s Rick Rieder.

Earlier: Bessent sees possibility of future overhaul of Fed’s 2% target

Trump has made many cryptic – and sometimes contradictory – remarks about his decision-making process regarding the new central bank chief. The president said in early December that he had narrowed the field to one, but later said he was considering multiple candidates and praised several of the names on the shortlist.

Trump has long criticized Powell, whom he chose to lead the central bank during his first term. The president has indicated he wants the next president to cut interest rates more aggressively as the White House seeks to reduce mortgage costs.

He said Monday he was considering legal action for “gross incompetence” against Powell over an ongoing renovation project at the Fed. Powell’s term as chair is scheduled to end in May 2026, but his term on the Fed Board of Governors does not expire until 2028.