Trump says that Powell will leave his office in 8 months

Today, Trump has once again pestered Jerome Powell over interest rates. This time around, he has said that the Fed chair will leave his office in 8 months. However, Powell’s tenure as the chair will come to a close in 10 months, but he will continue to serve as a Fed board member up to 2028.

In a meeting at the White House with Philippine President Ferdinand Marcos Jr., Trump said, “I think he’s done a bad job, but he’s going to be out pretty soon anyway. In eight months, he’ll be out.”

*TRUMP: POWELL IS GONNA BE OUT SOON ANYWAY, 8 MONTHS

As I said, Trump can’t fire Powell. However, understand that next May we are likely getting the most political Fed Chair in history. This is headed in one direction.

Realize where we are. pic.twitter.com/JnMM7qeYd1

— Geiger Capital (@Geiger_Capital) July 22, 2025

Trump has been on Powell’s neck for months for not cutting rates. He has frequently raised the possibility of ousting him. However, it has been nothing but wishful thinking. This is because the president cannot remove a governor by law except “for cause.” That is a legal term that means he would have to show that the person had done something wrong.

The White House has already tried this approach. Trump pushed for a review of the Fed’s renovation of two buildings in Washington, which they say are inappropriately lavish and may not have followed planning protocols.

However, Powell repeatedly said he would not leave the post early. This means that he is determined to stay as chair till May 15, 2026, and as a board member till January 2028.

Who is leaving the Fed next?

According to the law, the president nominates a Fed chair and two vice chairs for four-year terms. They are confirmed by the Senate for those positions in a vote distinct from their confirmation as Fed Board of Governors members.

In this case, Jerome Powell, a Barack Obama nominee, and Michelle Bowman for the vice chair post. She was nominated by President Trump and took office for a four-year term on June 9, 2025. 

On the other hand, the president and Senate have no say in picking presidents of the 12 regional Fed banks. They’re chosen by their private sector boards of directors, subject to the approval of the Fed Board of Governors in Washington.

In this case,  Biden nominees for the Fed board that may not favor Trump long-term are Lisa Cook, confirmed by the Senate twice for a term that expires in 2038, and Adriana Kugler, confirmed for a term that expires in 2026. 

Other board members are Christopher Waller, confirmed till January 2030; Michael Barr, confirmed till January 2032; Michelle Bowman, confirmed till January 2034; and Philip Jefferson, confirmed till January 2036.

Finally, Presidents of the regional Fed banks can serve until they’re 65 unless appointed after turning 55, in which case they can serve for a maximum of 10 years or until they’re 75.

They are up for reappointment every five years. Meanwhile, all twelve are leaving earliest in 2028 or latest in 2038. The Fed Board of Governors in Washington could replace any of them, though it hasn’t ever done so.

Trump calls Powell’s rate cut move political

According to Trump, Powell has refused to lower costs for political reasons. This is controversial because he said he would hire someone to lower interest rates. He said that Europe has lowered its interest rates regularly, but “Mr too late” has not lowered those of the US.

To that end, whoever the successful candidate is could carry the specter of being there simply to do Trump’s bidding on interest rates.

Rumors continue to put more pressure on Powell. This time, not from Trump. Federal Housing Director Pulte says he believes Fed Chair Jerome Powell “will be resigning soon, but today is not the day.” Contrary to the time frame, reports emerged today that Powell had resigned. 

There are currently reports circulating that Fed Chair Powell has "officially resigned."

These reports are FAKE.

Fed Chair Powell has yet to even discuss a possible resignation.

And, in his comments this morning, Powell did NOT discuss any topics pertaining to a resignation.

— The Kobeissi Letter (@KobeissiLetter) July 22, 2025

They were debunked in no time. Fed Chair Powell has yet even to discuss a possible resignation.

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