Fed chair Powell can keep his job until term ends in 2026, says Trump

President Donald Trump said on Friday that Jerome Powell will stay on as Federal Reserve chair until his term expires in May 2026, even though he called him “a total stiff,” insulted him for refusing to cut interest rates, and repeatedly said he would fire him.

The latest comment came during an interview taped in Florida with NBC News, which aired Sunday. When Kristen Welker asked if Powell would be removed before his term ends, Trump replied,  “No, no, no. That was a total – why would I do that? I get to replace the person in another short period of time.”

Trump also repeated his long-standing demand that the Fed slash rates, adding, “He should lower them. And at some point, he will. He’d rather not because he’s not a fan of mine. You know, he just doesn’t like me because I think he’s a total stiff.”

Wall Street had already reacted badly last month after Trump ramped up his attacks on Powell, raising fears that the White House might interfere with the Federal Reserve’s independence.

Markets plunged during that period, with volatility rising to levels not seen since the first months of the COVID pandemic in 2020. Trump’s new comments seem aimed at calming those fears, though he made it clear he still wants Powell to fall in line.

Trump defends tariffs, blames Biden for weak GDP

Trump also used the interview to defend his chaotic trade strategy and to dodge blame for the latest economic numbers. The US economy shrank in the first quarter of 2025, but Trump insisted that was Joe Biden’s fault.

“It partially is right now,” Trump said when asked about taking responsibility. “And I really mean this. I think the good parts are the Trump economy and the bad parts are the Biden economy because he’s done a terrible job.”

He went on to say that his administration brought down energy and gas prices, and began fixing the US trade deficit. He also dismissed concerns about rising prices caused by tariffs. He told NBC:

“I’m just saying they don’t need to have 30 dolls. They can have three. They don’t need to have 250 pencils. They can have five.”

Trump claimed Americans wouldn’t be hurt by the higher prices on imported goods, because they could simply buy less. On April 2, Trump launched a massive tariff campaign. He slapped a 10% tariff on most countries and raised rates for several trading partners.

Some of those hikes were paused for 90 days, but others hit immediately. He imposed 25% tariffs on Canada, Mexico, autos, steel, and aluminum.

On China, the rate was set at 145%. That move essentially halted trade between the US and China, according to Trump. “We’ve gone cold turkey,” he said. “That means we’re not losing a trillion dollars … because we’re not doing business with them right now.”

Trade deals incoming, tariffs may stay forever

Trump told NBC that China now wants to come back to the table, though China has said many times the claims he’s making are nothing but lies. “They want to make a deal. They want to make a deal very badly,” he lied.

As per usual, he didn’t say if talks had started, but warned that any deal would have to be “fair.” Trump also confirmed that his administration is in talks with more than 15 countries to create new trade agreements. One of those deals could be ready soon, he said, without giving a date.

When asked if the tariffs could be lifted after those deals, Trump said maybe not. “No, I wouldn’t do that because if somebody thought they were going to come off the table, why would they build in the United States?” he asked.

Trump claimed that trillions of dollars in foreign and domestic investment were already coming in because of the tariffs, and he didn’t want to lose that momentum.

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