Trump attacks Powell again after the Fed hits pause on interest rate cuts
During a cabinet meeting, Trump updated his timeline to name a new Fed chair. He plans to announce Jerome Powell's replacement "next week sometime"
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President Donald Trump newly criticized Fed Chair Jerome Powell a day after the central bank held interest rates steady.
"Jerome 'Too Late' Powell again refused to cut interest rates, even though he has absolutely no reason to keep them so high," he said in a Thursday morning social media post.
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He sprayed familiar criticisms at the Fed, arguing that keeping interest rates high is costly for U.S. due to higher interest payments to service the national debt.
His salvo came following the Fed's decision to keep borrowing costs level in its first meeting of 2026 despite enormous pressure from the executive branch to lower them. Benchmark interest rates now stand between 3.5% and 3.75%.
Trump kept up the volley of criticisms during a cabinet meeting on Thursday. In between attacks, Trump gave an update on his timeline to nominate a replacement for Fed Chair Jerome Powell. His term expires in May. The president said he intended to name his pick "next week, I think, sometime."
"It'll be a person that will, I think, do a good job," Trump said. He insisted that the U.S. should have "the lowest interest rate anywhere in the world."
The four final candidates include Kevin Hassett, a White House economic aide; Kevin Warsh, a former Fed governor; Christopher Waller, a current Fed governor; and Rick Rieder, a BlackRock $BLK executive.
Rieder has faced scrutiny from Trump allies for his past political donations to Democratic candidates, which could complicate his standing given the White House's emphasis on loyalty.
Fed officials maintain that the U.S. economy remains on solid footing, even as the president's tariffs inject plenty of uncertainty into economic activity.
"Economic activity has been expanding at a solid pace," a Tuesday statement from the Fed said. "Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated."
Powell is under investigation from the Department of Justice over testimony he delivered to senators about ongoing renovations at the Fed's headquarters. Still, he declined to address the probe and kept the focus on the U.S. at a Wednesday press conference.
"The economy has once again surprised us with its strength, not for the first time," Powell said.
Powell can't single-handedly cut interest rates. That task falls on the 12-member Federal Open Market Committee. Powell does chair the FOMC, but they must reach a majority consensus on which direction to adjust interest rates.