Donald Trump stated in an interview with Bloomberg Businessweek that if he were to win the November election, he would allow Federal Reserve Chair Jerome Powell to complete his term at the central bank. Trump mentioned, “I would let him serve it out, especially if I thought he was doing the right thing.” President Joe Biden nominated Powell for a second four-year term as Fed chief in May 2022. Powell currently serves as a Fed governor and will hold this position until Jan. 31, 2028.
These remarks represent a change in stance for the former president, who previously had a strained relationship with the central bank leader. Powell assumed the role of Fed chief in February 2018 and had faced criticism from then-President Trump regarding interest rate policy. In 2019, Trump openly criticized the central bank and Powell, despite policymakers lowering rates three times that year to a target range of 1.5% to 1.75%. Trump had argued that the U.S. was at a disadvantage economically compared to other countries with lower rates.
As recently as February of this year, Trump expressed to Fox Business that he would not reappoint Powell to lead the Fed, alleging that Powell was politically motivated. Trump stated, “I think he’s political. I think he’s going to do something to probably help the Democrats, I think, if he lowers interest rates.”
