President Trump said Wednesday that Fed Chair Jerome Powell has “mental problems” and he would love to “fire his ass,” but Treasury Secretary Scott Bessent is holding him back.
Audience members laughed as Trump urged Bessent to “work on this guy” during the US-Saudi Investment Forum at the Kennedy Center in Washington, DC – even threatening the Treasury secretary’s job.
“[Powell’s] got some real mental problems. There’s something wrong with him. I’ll be honest, I’d love to fire his ass,” Trump fumed. “He should be fired. Guy is grossly incompetent.”
He then turned to Bessent with a smile, saying, “You’ve got to work on him, Scott.”
“The only thing Scott is blowing it on is the Fed because the Fed – the rates are too high, Scott. And if you don’t get it fixed fast, I’m going to fire your ass, okay?” Trump continued.
The president said Bessent has begged him not to fire Powell before the chairman’s term expires in May 2026.
“‘Sir, don’t fire him. Sir, please don’t fire him. He’s got three months to go,’” Trump said, imitating Bessent in a pleading tone. “‘Please, he’s a voice of reason.’”
Trump’s attacks on Powell, whom he appointed during his first term in 2018, are nothing new.
He has previously called the chairman “stupid,” “dumb” and “hardheaded” as he has pushed the Fed to slash interest rates more quickly.
The Fed slashed interest rates by a quarter point in September – its first cut since December. Rates were lowered another quarter point in October.
But hopes for another rate cut in December have diminished as several Fed officials have advocated for a more cautious approach.
During his speech on Wednesday, Trump also took fresh aim at the Fed’s $2.5 billion headquarter renovations project.
“[Powell] should be sued for spending $4 billion to build a little building. I’m building a ballroom that’s gonna cost a tiny fraction of that and it’s bigger than the whole thing put together,” Trump said.
The president says his $300 million White House ballroom will be funded by private donors – including tech giants like Amazon, Meta and Apple and MAGA donors like the Winklevoss twins – not taxpayer dollars.
Trump blasted the Fed’s renovations earlier this year, claiming they went far over budget.
After visiting the construction site in July, he seemingly backed off, telling reporters at the time that he wouldn’t fire Powell.
