In a major update from Washington tonight, former President Donald Trump says he will not remove Federal Reserve Chairman Jerome Powell before Powell’s term ends in 2026. Speaking in an exclusive interview with NBC’s ‘Meet the Press,’ Trump made his strongest statement yet on Powell’s future, despite calling him, quote, ‘a total stiff.’
Trump, who has repeatedly criticized the Fed for not lowering interest rates, maintained his belief that Powell is no supporter of his, but nonetheless confirmed Powell will stay in his role until the end of his term. ‘No, no, no. Why would I do that?’ Trump said when asked if he’d fire the Fed chair.
Wall Street had been rattled in recent weeks as Trump ramped up attacks on Powell, leading to fears about the Federal Reserve’s independence. But Trump’s latest remarks are likely to ease those concerns, signaling that Powell’s position is secure—for now.
The former president also doubled down on his controversial trade policies. He defended the sweeping tariffs his administration imposed on countries worldwide, including 10% tariffs on most imports, 25% tariffs on cars, steel, and aluminum, and a staggering 145% tariff on Chinese goods. Despite growing worries that these tariffs could push prices higher for American consumers, Trump brushed aside concerns.
In the interview, Trump argued that Americans don’t need as many low-cost goods from abroad. ‘They don’t need 30 dolls,’ he said. ‘They can have three. They don’t need 250 pencils—they can have five.’ He also suggested that his tariffs were successfully pressuring countries to negotiate new trade deals, with talks underway with over 15 nations and a possible agreement on the horizon.
When pressed about the state of the economy, Trump sent mixed signals. He dismissed concerns about a recent decline in GDP, blaming former President Joe Biden for any weakness. Yet he claimed credit for positive trends, saying, quote, ‘The good parts are the Trump economy, and the bad parts are the Biden economy because he’s done a terrible job.’
Trump also took credit for falling energy and gas prices, and efforts to reduce the U.S. trade deficit, while defending the volatility his policies have sparked on Wall Street—volatility not seen since the early days of the COVID pandemic five years ago.
When asked if the tariffs might be rolled back, Trump left the door open to keeping them in place permanently. ‘If they think they’ll come off, why would they build in the U.S.?’ he said, claiming his tough stance had already attracted trillions of dollars in new investments.
On China, Trump acknowledged cutting off much of U.S.-China trade, saying, quote, ‘We’ve gone cold turkey,’ but insisted Beijing is eager to strike a deal. ‘We’re not losing a trillion dollars because we’re not doing business with them right now,’ Trump said. ‘They want to make a deal very badly.’
With markets watching closely and global trade in the balance, Trump’s comments tonight add new twists to an already unpredictable economic landscape.
Reporting by Katy Moore.
