Trump unhappy with Powell for not cutting rates, floats replacement

President Donald Trump, unhappy with the Federal Reserve for not cutting interest rates, has called Chairman Jerome Powell a “numbskull,” “Mr. Too Late” and referred to him as a “stupid person” before policymakers left interest rates unchanged for the fourth time this year on Wednesday.

He has also floated naming a replacement for Powell even though his term is firm through May 2026 as chair, and until Jan. 31, 2028 for the board of governors. 

During a Wednesday press conference, Powell was asked about the verbal insults and criticism by Trump over interest rates.

“From my standpoint, it’s not complicated. What everyone on the FOMC wants is a good, solid American economy with a strong labor market and price stability. That’s what we want. We think our policy is well positioned right now to deliver that and to be able to respond in a timely way as the data leads us around. The economy’s been resilient. And part of that is our stance,” he said. He declined to say whether he would remain as a Fed governor if he was not reappointed. 

FOX Business takes a look at the contenders who could eventually lead the Federal Reserve. 

Scott Bessent

Scott Bessent is currently the treasury secretary and spent much of his career managing investments. (Photo by Andrew Harnik/Getty Images / Getty Images)

Scott Bessent, the current treasury secretary, spent the bulk of his career managing investments, including for billionaire George Soros. Bloomberg News reports he is the frontrunner. In recent congressional testimony, he said that his current role is “the best job” in the nation’s capital and that while he is “happy to do what President Trump wants me to do,” he “would like to stay in my seat through 2029” to advance the administration’s agenda until the end of the president’s term.

FED KEEPS INTEREST RATES STEADY, EVEN AMID TRUMP INSULTS

Kevin Hassett 

Kevin Hassett is currently the director of the National Economic Council. (Anna Moneymaker/Getty Images)

Economist and National Economic Council Director Kevin Hasset, who is serving his second stint in Trump world after heading the Council of Economic Advisors during Trump’s first term. Hassett has been vocal about pushing the “big beautiful bill” that is part of Trump’s tax platform. 

WILL PRESSURE FROM TRUMP AND VANCE SPUR POWELL TO CUT INTEREST RATES?

Judy Shelton

Judy Shelton testifies before the Senate Banking, Housing and Urban Affairs Committee during a hearing on her nomination to be member-designate on the Federal Reserve board of governors on Feb. 13, 2020, in Washington, D.C.  ((Photo by Sarah Silbiger/Getty Images))

As a monetary economist and senior fellow at the Independent Institute, she advised Trump during his first term and has been a critic of the Federal Reserve. Still, she recently acknowledged she is not as high on the list as other potential picks.

“I am very honored to be at least mentioned. I won’t say the top tier but I am glad to see my name put forward, because I’ve always been very appreciative and honored that President Trump did nominate me to serve on the board of governors,” she said during an interview with FOX Business Network’s Charles Payne. 

TRUMP PUSHES FED FOR JUMBO RATE CUT

Kevin Warsh

Kevin Warsh is a former governor of the Federal Reserve. (Photographer: Tierney L. Cross/Bloomberg via Getty Images)

CLICK HERE TO READ MORE ON FOX BUSINESS

Former Fed official Kevin Warsh, who Trump considered for the treasury secretary role before opting to nominate Bessent, is also on the short list for the Fed chair role, according to Bloomberg. Warsh is currently a Shepard Family distinguished visiting fellow in economics at the Hoover Institution. 

FOX Business Network’s Eric Revell contributed to this report.