US President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell on Wednesday, calling him “terrible” and revealing he has narrowed down a shortlist of potential replacements for the top Fed post.

“I know within three or four people who I’m going to pick,” Trump told reporters when asked if he was interviewing candidates to replace Powell.

According to news agency Reuters, among the reported contenders are former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, current Fed Governor Christopher Waller, and Treasury Secretary Scott Bessent.

Trump has long expressed frustration with Powell over his reluctance to cut interest rates, and has repeatedly floated the idea of firing him or naming a successor. However, he has often softened those threats, most recently saying on June 12, “I’m not going to fire him.”

When asked Wednesday about his potential role in Powell’s replacement, Hassett avoided a direct answer, stating: “I think the President will choose the person that he likes, and it’s not going to be Jay Powell.”

Some analysts interpret Trump’s comments as an attempt to steer monetary policy by creating pressure on Powell ahead of the Fed chair’s term ending in May 2026. While the Fed is traditionally insulated from presidential dismissal except in cases of misconduct, Trump’s frequent threats could test that legal boundary.

Meanwhile, Powell told Congress this week that rising tariffs could fuel inflation over the summer, even as the central bank considers whether to cut rates. He noted that the Fed expects inflation to pick up in the near term and is not rushing to reduce borrowing costs.

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With inputs from Reuters

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