President Donald Trump signaled a major shake-up at the Federal Reserve on Thursday, telling reporters he will unveil his choice to replace Fed Chair Jerome Powell the very next morning.
According to FOX Business, Trump made the announcement while walking the red carpet ahead of the premiere of First Lady Melania Trump’s new film, “Melania”.
Asked how soon a decision was coming on the central bank’s leadership, the president was blunt.
“Tomorrow morning,” Trump said. “I’ll be announcing the Fed chair tomorrow morning.”
The timing comes amid an intensifying public clash between Trump and Powell, whom the president has repeatedly accused of holding interest rates too high despite easing inflation pressures.
Earlier Thursday, Trump launched a sharp attack on Powell, arguing the country should already be benefiting from dramatically lower borrowing costs.
“He is costing America Hundreds of Billions of Dollars a year in totally unnecessary and uncalled for INTEREST EXPENSE,” Trump wrote on Truth Social. “Because of the vast amounts of money flowing into our Country because of Tariffs, we should be paying the LOWEST INTEREST RATE OF ANY COUNTRY IN THE WORLD.”
Trump added that lower rates were justified “now that even this moron admits inflation is no longer a threat.”
The president originally nominated Powell to lead the Federal Reserve in 2017, but their relationship has steadily deteriorated.
What began as disagreements over monetary policy has evolved into a sustained pressure campaign, with Trump urging faster and deeper rate cuts to spur economic growth.
Over the past year, Trump’s criticism has grown sharper and more personal, transforming a policy dispute into one of the most contentious periods of Powell’s eight-year tenure at the Fed.
That tension deepened earlier this month when the Justice Department opened a criminal investigation into Powell, tied to his congressional testimony regarding the Federal Reserve’s renovation of two buildings in Washington, D.C.
Powell confirmed the probe on Jan. 11 in a video statement, calling the investigation “unprecedented” and suggesting it reflected escalating threats against the central bank’s independence.
After several days of internal deliberations, Powell addressed reporters Wednesday for the first time since news of the investigation broke. He declined to engage with the administration’s criticism and said he would not comment on the matter further.
The showdown between the White House and the Fed is unfolding as the Supreme Court considers a related question about the president’s authority to remove sitting Fed Governor Lisa Cook — a case that could have broader implications for the independence of the central bank.
With Trump now promising to name Powell’s successor imminently, attention is squarely focused on who will take the helm of the Federal Reserve — and what direction U.S. monetary policy may take next.
