U.S. President Donald Trump has confirmed he will not remove Federal Reserve Chairman Jerome Powell before his term ends in May 2026, despite calling him “a total stiff” and pressing for lower interest rates. In an interview on NBC’s Meet the Press with Kristen Welker, taped Friday, May 2, 2025, at Mar-a-Lago and aired Sunday, Trump said, “No, no, no. Why would I do that? I get to replace the person in another short period of time.” This marks his clearest commitment to retaining Powell, a shift from earlier attacks that sparked market turmoil, including a sharp Wall Street drop in April 2025 after Trump called for Powell’s “termination” on Truth Social. The reassurance comes as markets grapple with Trump’s aggressive tariff policies, which have disrupted global trade.
Trump reiterated his call for the Fed to cut rates, claiming Powell’s reluctance stems from personal dislike. “He should lower them. And at some point, he will. He just doesn’t like me because I think he’s a total stiff,” he said. Despite tensions, with Powell warning that Trump’s tariffs could fuel inflation and slow growth, Trump’s decision to keep him signals an effort to stabilize markets. The Fed’s independence remains a concern, as Trump’s April 30 rally remarks—claiming he understands interest rates better than Powell—drew comparisons to Nixon’s 1970s Fed meddling, which fueled stagflation.
On trade, Trump defended his tariff regime, including a 10% universal tariff imposed April 2, 2025 (later paused for 90 days), 25% tariffs on Canada, Mexico, and specific sectors like automobiles, and 145% tariffs on China. He declined to rule out permanent tariffs, arguing they incentivize U.S. investment: “If people believed they would be lifted, why would they invest in the United States?” His administration is negotiating trade deals with over 15 countries, with a first deal expected soon, though talks with China remain stalled. Trump claimed his “cold turkey” approach has forced Beijing to seek a deal, stating, “They want to make a deal very badly. It’s got to be a fair deal.”
The interview reflects a strategic pivot after market backlash to Trump’s policies, with the S&P 500 down 6% since January 21, 2025, partly due to tariff fears. Posts on X show mixed sentiment: @NEWSMAX noted Trump’s earlier Powell criticism, while @Cointelegraph highlighted his April 22 softening. The Fed’s cautious stance, with Governor Adriana Kugler citing tariff-driven inflation risks, underscores the economic tightrope. As Trump balances trade wars and Fed pressure, his commitment to Powell’s tenure offers temporary market relief, but the tariff-driven uncertainty persists, with global trade and U.S. consumers bracing for impact.
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