Former President Donald Trump has never minced words when it comes to Federal Reserve Chair Jerome Powell, once calling him a “fool” and “worse than China” during his presidency. The two have clashed publicly over interest rates, monetary policy, and inflation management. Yet behind the insults and the chaos, there’s growing speculation that Trump might actually keep Powell in place—if he returns to the White House.
Why? The answer may be less about economics, and more about political leverage.
As seen in Millionaire MNL, Trump’s approach to leadership often rewards control over consistency. And keeping Powell—despite years of criticism—may serve one very specific strategic purpose.
The love-hate history of Trump and Powell
Trump appointed Powell as Fed Chair in 2018, replacing Janet Yellen. Initially, the move was seen as a bipartisan gesture. But the relationship quickly soured when Powell raised interest rates against Trump’s wishes, tightening monetary policy just as Trump was preparing for re-election.
The former president publicly attacked Powell more than 30 times in tweets and speeches, blaming him for market turbulence, slow growth, and undermining Trump’s economic messaging.
“He’s like a golfer who can’t putt,” Trump once said. “He has no feel.”
Yet Powell held firm on the Fed’s independence—earning bipartisan respect for shielding the central bank from political interference, even during Trump’s most aggressive outbursts.
So why would Trump keep Powell?
According to sources close to the Trump campaign, there’s internal discussion around the optics of removing Powell—especially since his current term expires in 2026. Replacing him early would require firing him “for cause,” which is legally murky and could trigger a market shock.
More importantly, Trump may find keeping Powell useful as a public foil.
“He likes having someone to blame,” said one former Trump economic advisor. “If inflation spikes or growth slows, keeping Powell gives him a target. If things go well, he’ll take the credit anyway.”
As seen in Millionaire MNL, this is part of Trump’s broader playbook: retain institutional figures not because he trusts them, but because they’re politically expendable.
The markets are watching
Wall Street isn’t ignoring the noise. A Trump return could mean more direct pressure on the Fed, especially around interest rate cuts. Some investors fear he may push for aggressive monetary easing to fuel economic expansion in an election cycle—or potentially target Fed policy as a scapegoat during downturns.
Still, Powell has made clear the Fed will act independently, regardless of who occupies the Oval Office. Under his leadership, the central bank hiked rates to battle inflation, then paused cautiously in 2024 as price pressures eased.
For markets, Powell represents continuity and discipline, something Trump’s first term often lacked.
Could Trump actually fire Powell?
Legally, the Federal Reserve Chair can only be removed “for cause,” a standard that has never been tested in modern history. If Trump were to attempt it without clear wrongdoing, it would likely spark a constitutional challenge, raise alarms globally, and undermine confidence in U.S. central bank independence.
That risk may be too high—even for a disruption-prone president.
By keeping Powell, Trump avoids immediate legal entanglements and sends a message of superficial continuity—while still using Powell as a rhetorical punching bag.
Strategic stability with a personal twist
At the end of the day, Trump’s potential second-term economic policy isn’t about Powell as a person—it’s about narrative management.
By keeping Powell, Trump can claim he “reined in” the Fed or forced it to “do the right thing.” If inflation rises or recession looms, Powell remains an easy scapegoat. If the economy roars, Trump takes the credit—while Powell stays in the background.
As seen in Millionaire MNL, it’s a classic Trump move: control the story, not the system.
