Trump says he'd ‘love to fire' Jerome Powell in latest attack on Fed chair

The Guardian | December 30, 2025 at 12:29 AM UTC

Bearish 80% Confidence Unanimous Agreement

Key Points

Trump contradicted himself by criticizing Biden for reappointing Powell, whom Trump originally appointed in 2018
The president plans to announce Powell's successor in January 2025 when the current Fed chair's term expires
Trump's White House ballroom cost doubled due to security features including bullet-proof glass and drone-resistant roofing

AI Summary

Trump Threatens to Fire Fed Chair Powell, Suggests Legal Action

During a Monday press conference with Israeli PM Benjamin Netanyahu, President Trump escalated attacks on Federal Reserve Chair Jerome Powell, calling him a "fool" and expressing desire to fire him. Trump threatened to file a "gross incompetence lawsuit" against Powell, primarily over renovation costs for the Fed headquarters.

Key Claims and Figures:

Trump falsely claimed Fed renovation costs are $4.1 billion, inflating the actual $2.5 billion figure
President acknowledged his own White House ballroom project doubled from initial $200 million estimate to $400 million
Attributed ballroom cost increase to inauguration requirements including bulletproof glass and drone protection

Market Implications:

The renewed tensions between Trump and Powell create uncertainty around Federal Reserve independence and monetary policy direction. Trump confirmed he will appoint Powell's successor next year, with announcement planned for January. This public conflict could impact market confidence in Fed decision-making and potentially influence interest rate expectations.

Background Context:

Despite Trump's criticism of Biden for reappointing Powell, Trump himself originally appointed Powell in 2018. The president's attacks come amid his claims about the "great state" of the US economy, though he attributes success despite Powell's leadership rather than because of it.

The escalating rhetoric and threat of legal action against the Fed chair represents an unprecedented challenge to central bank independence, potentially affecting dollar stability and investor confidence in US monetary policy framework.

Model Analysis Breakdown

Model	Sentiment	Confidence
GPT-5-mini	Bearish	75%
Reasoning: Public threats to fire the Fed chair and attacks on Fed competence increase political risk and threaten central-bank independence, which is typically negative for risk assets and could raise uncertainty in rates markets.
Claude Sonnet 4.5	Bearish	80%
Reasoning: Presidential attacks on the Fed Chair and threats of firing create significant uncertainty around central bank independence, which markets typically view negatively. The threat of a lawsuit and potential leadership change adds to policy uncertainty.
Gemini 2.5 Pro	Bearish	85%
Reasoning: Public attacks on the Federal Reserve chair and threats to the central bank's independence create significant policy uncertainty, which is negative for market stability and investor confidence.
Consensus	Bearish	80%

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Article Details

News ID: 3453803
Source: The Guardian
Analyzed: 56 days ago

Sentiment Confidence

Average Confidence 80%

High confidence in sentiment