Trump Says Jerome 'Too Late' Powell Will Be Out In A Few Months, Calls For Candidate Suggestions To Replace Him

• President Trump continued his attacks against Powell, calling him “Too Late,” after criticizing him in the past for not heeding his demands for interest rate cuts.
• He said that he would like Bessent to take up the job, but noted that the Treasury Secretary declined.

President Donald Trump on Tuesday stated that Federal Reserve Chair Jerome Powell will be “out in a few months” and that Treasury Secretary Scott Bessent has a long list of potential replacements.

“I think he’s incompetent, or a bad guy. But despite that, mortgage rates are down.. who could believe that?” said President Trump, while addressing a gathering of business leaders on his Japan visit.

Bad Reference

President Trump continued his attacks against Powell, calling him “Too Late,” after previously criticizing him for not heeding his demands for interest rate cuts.

“Somebody gave me a bad reference of him and I put him based on some guy that turned out to be not so hot. We got a bad Fed guy, but he’ll be out of there in a few months.”

— Donald Trump, U.S. President

Trump said that he would like Bessent to take up the job, but noted that the Treasury Secretary declined. “I'm thinking about him for the Fed... but he won't take the job. He likes being Treasury (secretary), so we're not thinking about him really,” he said.

Fed Meeting This Week

The Federal Open Market Committee’s (FOMC) meeting to decide the monetary policy is all set to begin on Tuesday, with the rate decision slated to be announced on Wednesday.

According to data from the CME FedWatch tool, there is a 97.8% probability of a 25-basis-point rate cut at the October meeting.

On Monday, Bessent confirmed the five finalists for the Federal Reserve Chair job. This includes Fed Vice Chair for Supervision Michelle Bowman and Fed Governor Christopher Waller, National Economic Council director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock Fixed Income CIO Rick Rieder.

President Trump expects to nominate the Fed Chair by the end of 2025.

Meanwhile, U.S. equities rose in Tuesday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.15%, the Invesco QQQ Trust ETF (QQQ) gained 0.24%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.48%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.1% at the time of writing.

Also See: Dow Futures Edge Higher After Trump Signs Rare Earths Framework With Japan: AMZN, NEE, UNH, UPS Among Stocks To Watch

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