Trump Threatens To Sue Fed Chair Jerome Powell For ‘Incompetence’: Says Replacement Appointment Expected In January

• Trump slammed Powell as incompetent and said that he might still fire the current Fed chair. 
• Last week, Trump said that anyone who disagrees with his views on interest rates “will never be the Fed Chairman.”
• Meanwhile, the search for the next Federal Reserve Chair is reportedly continuing.

President Donald Trump said on Monday that he now expects to announce a new federal reserve chairman by January while adding that he is considering bringing a suit against current chair Jerome Powell.

At the end of his press conference with Israel Prime Minister Benjamin Netanyahu on Monday evening, Trump said that he still has a favorite for the position of the Fed Chair without taking names. He also slammed Powell as incompetent while highlighting the budget for renovation at the Federal Reserve and said that he might still fire him. Powell’s term as Fed chair is set to end in May 2026. 

Trump’s Criteria

Last week, Trump said that anyone who disagrees with his views on interest rates “will never be the Fed Chairman.”

“I want my new Fed Chairman to lower Interest Rates if the Market is doing well, not destroy the Market for no reason whatsoever,” Trump wrote in a lengthy post on Truth Social. He added that inflation could be addressed later if it materializes, but warned that raising rates during rallies risks a “kill” in market momentum.

Trump also said that encouraging rising markets could significantly boost economic growth, claiming GDP gains of 10 to 20 points annually were possible if rallies were not cut short by tighter monetary policy.

“The United States should be rewarded for SUCCESS, not brought down by it,” he wrote.

Ongoing Search For New Fed Chair

Meanwhile,  the search for the next Federal Reserve Chair continues. Fed Governor Christopher Waller reportedly had a “strong interview” with Trump earlier this month at the President’s residence.

BlackRock Chief Investment Officer of Global Fixed Income Rich Rieder is scheduled to be interviewed for the role during the final week of 2025. The shortlist for candidates has narrowed to four candidates, with Fed Governor Michelle Bowman reportedly no longer in contention, while White House National Economic Council Director Kevin Hassett and former Fed Governor Kevin Warsh have already completed interviews.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust trended in the ‘bullish’ territory with ‘normal’ and ‘low’ message volume, respectively. Meanwhile, the SPDR Dow Jones Industrial Average ETF Trust had ‘neutral’ sentiment amid ‘low’ message volume.

So far this year, SPY is up 17%, while QQQ and DIA are up 21% and 14%, respectively. 

Also See: Tesla Supplier Reportedly Slashes Contract In Part Due To Lower-Than-Expected Cybertruck Demand

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