President Donald Trump has made it clear that Federal Reserve Chairman Jerome Powell’s job is safe for now. Despite ongoing tensions, Trump stated on Newsmax’s “Finnerty” that removing Powell could “disturb the market.” This decision comes after their disagreements over Trump’s reciprocal tariffs announced in April, which Powell suggested might harm the U.S. economy.
Fox News reported that the president has repeatedly encouraged Powell to lower interest rates, pointing to the administration’s tariff success as a rationale. The Federal Reserve, in its June 2025 meeting, decided to maintain the target range at 4.25% to 4.5%. CNBC highlighted Powell’s comments about rate cuts being possible if not for Trump’s tariffs, which he referred to as “Liberation Day” tariffs.
There have been growing calls for an investigation into Powell, especially concerning his spending on a new Federal Reserve headquarters. Trump shared an article urging Congress to look into this matter. Newsmax’s Rob Finnerty questioned the president about the possibility of removing Powell due to the controversial new headquarters, which is estimated to cost over $2 billion.
The president was vocal about the project’s financial implications, stating, “He’s building a building for 2.9 billion dollars.” Trump compared this to his own experiences in construction, citing his success with the renovation of the old post office into a hotel. Trump emphasized that he understands building projects better than most.
During the discussion, Trump expressed disbelief over the project’s budget, suggesting it was excessively high. “It’s way over budget by hundreds of millions of dollars,” he remarked. The president described the project as unnecessarily lavish, likening it to a personal palace for Powell, yet noted Powell wouldn’t be there much longer.
Axios reported that following demands for an investigation, Powell requested a review of the Fed’s headquarters project. This came amid accusations of the building’s extravagance. Meanwhile, Republican Florida Rep. Anna Paulina Luna referred Powell to the Department of Justice for alleged perjury related to the project.
Despite these controversies, Powell remains in his position. When Finnerty asked if Powell would stay, Trump replied, “Well, it’s very disruptive.” This suggests that, for now, Powell’s removal is not imminent.
In a recent press briefing, Powell addressed questions about interest rates, particularly concerning rising mortgage rates. He maintained that “housing is a special case,” and the Fed does not directly set mortgage rates. Powell’s term is set to end by May 15, 2026, and he has indicated he will not leave before then.
Reuters confirmed Powell’s commitment to serving his full term. The ongoing debates over his leadership continue to stir political circles. However, Trump’s decision to keep Powell underscores a cautious approach to maintaining economic stability.
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Darnell Thompkins is a Canadian-born American and conservative opinion writer who brings a unique perspective to political and cultural discussions. Passionate about traditional values and individual freedoms, Darnell’s commentary reflects his commitment to fostering meaningful dialogue. When he’s not writing, he enjoys watching hockey and celebrating the sport that connects his Canadian roots with his American journey.