With Federal Reserve policymakers reportedly split on whether to lower interest rates next month, President Donald Trump said he was being held back from firing Chair Jerome Powell.
The president's frustration intensified this week as media reports revealed deep divisions inside the Fed over a December rate cut — a move Trump has publicly demanded to support growth, ease borrowing costs, and counter what he called the lingering inflation left over from the Biden years.
Trump said Powell remains, in his words, "Jerome 'too late' Powell," arguing the Fed chief has damaged the housing market and acted too slowly on rates.
"Frankly, I'd love to fire his a**," Trump said Wednesday, Politico reported.
A day earlier in the Oval Office, the president told reporters that advisers were "holding me back" from removing Powell before his term ends in May.
Trump said he has already begun interviewing potential replacements, noting that he has both "surprising names" and more traditional candidates under consideration.
Treasury Secretary Scott Bessent, who is coordinating the chair search, has publicly acknowledged a short list that includes Kevin Hassett, Christopher Waller, and Kevin Warsh.
The tensions come as Fed officials confront a murky economic picture.
According to Politico, policymakers are "increasingly split" over whether to move ahead with another rate reduction in December.
While most investors previously expected a cut, that likelihood has dropped sharply as inflation shows stubborn pockets of strength and as hiring slows.
A prolonged federal government shutdown has further complicated the outlook by delaying key jobs and inflation reports, leaving officials without the data they typically rely on when forming a consensus.
The September jobs report, released only after delays, showed mixed signals: a rising unemployment rate of 4.4% but stronger-than-expected hiring.
Minutes from the Fed's October meeting, reported by The New York Times, showed "strongly differing views" among officials, with some arguing that further cuts risk reigniting inflation while others warned that holding steady could worsen labor-market weakness.
The October vote itself included a rare split, with one official pushing for a larger cut and another opposing a reduction entirely.
Economists quoted across the financial press noted that tariff-related price increases — stemming from Trump's broad import duties — continue to influence inflation readings, though not as sharply as predicted.
Some analysts warn that cutting rates too aggressively could force rate hikes later in 2026, just as Trump's next Fed chair would be taking office.
Still, the president insists that Powell has "been wrong" at every turn and that the administration's booming economy has succeeded "despite" Fed missteps.
Trump highlighted strong consumer spending, a manufacturing revival linked to tariffs, and rapid investment in artificial intelligence as proof that the Fed is out of sync with economic reality.
With Fed officials publicly airing disagreements and critical economic data delayed until mid-December, the central bank's next move is unusually uncertain.
Newsmax Wires contributed to this story.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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