Fed Chair Jerome Powell’s term ends in May 2026, although President Trump wants him gone sooner rather than later. During the past few months, Trump has repeatedly pressured Powell to lower interest rates. Powell hasn’t budged, citing the risk of tariff-driven inflation later on in the year.
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“Our Fed Rate is AT LEAST 3 Points too high. ‘Too Late’ is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing costs. No Inflation, COMPANIES POURING INTO AMERICA,” said Trump in a Truth Social post on Wednesday.
While Powell’s term as Chair ends next year, his term as a member of the Fed Board of Governors lasts until January 31, 2028.
The Fed’s Dual Mandate
Trump cites no inflation as a reason to lower the federal funds rate. Keeping inflation in check is one aspect of the Fed’s dual mandate, while maximizing employment is the other. The Fed usually raises rates to combat high inflation. With inflation around the Fed’s 2% target, the central bank has flexibility to cut rates. On top of that, the unemployment rate has remained subdued and was last reported at 4.1%.
According to TipRanks’ Trump Dashboard, Bank of America (BAC), JPMorgan Chase & Co. (JPM), and four other stocks will likely be affected by Trump’s post.
