Overview

• Trump has publicly attacked Powell as “stupid” and a “bad person,” accusing him of keeping benchmark rates artificially high at 4.25–4.50% and insisting they be cut to 1% or 2%.
• He revealed he has three to four names in mind and signaled he may announce a Fed chair replacement well before Powell’s term expires in May 2026.
• White House officials have even discussed installing a “shadow” Fed chair to issue competing policy guidance alongside Powell.
• A recent Supreme Court ruling and longstanding Fed independence protections shield Powell from removal over policy disputes, blocking Trump’s direct firing threat.
• Global bond yields jumped after Trump’s early threats to sack Powell and remain volatile as markets brace for conflicting cues from Washington.