Trump Says Fed Chair Powell Leaving Within Eight Months

President Donald Trump has sharply criticized Federal Reserve Chair Jerome Powell for maintaining high interest rates, calling him a "numbskull" and accusing him of political motivations. Trump, who appointed Powell in 2018, expressed frustration that the Fed has not lowered rates despite economic pressures, contrasting U.S. policy with Europe's multiple rate cuts. Although Trump had previously threatened to fire Powell, he now indicates he will let Powell serve out his term, which ends in May 2026, while continuing to call for earlier rate cuts. Treasury Secretary Scott Bessent has suggested Powell's legacy should focus on recalibrating the Fed's non-monetary functions amid scrutiny over the central bank's expanded roles and recent $2.5 billion headquarters renovation. Powell has defended the Fed's stewardship of resources and reiterated plans to monitor inflation and the effects of tariffs before adjusting rates. Despite political tensions, Powell remains committed to completing his term, with his broader role at the Fed extending until 2028.