Trump Holds Off on Firing Powell—for Now; Floats Idea of Making Tariffs Permanent

In a Sunday interview with NBC’s Meet the Press, President Donald Trump reignited his long-running feud with Federal Reserve Chair Jerome Powell, calling him “not a fan of mine” and “a very stiff person.” Still, Trump said he has no immediate plans to remove Powell from his post: “I could do it very quickly… but why would I?”

The comments quickly drew attention on Wall Street. While Trump has repeatedly criticized the Fed for moving too slowly on rate cuts, this time his tone appeared more calculated. Some observers believe the statement was aimed at calming investor nerves while keeping political pressure on Powell intact.

Powell’s current term as Fed Chair runs through May 2026. Just weeks ago, Trump was far more aggressive—posting on social media that Powell’s removal was “not happening fast enough,” and telling reporters in the Oval Office, “If I wanted him out, he’d be out fast. Believe me.”

According to Bloomberg, senior officials including Treasury Secretary Bessent have quietly urged Trump to back off threats against Powell to avoid market volatility. Trump’s latest comments, then, may be a deliberate shift: maintain leverage without spooking investors.

The timing is key. The Federal Reserve is set to hold its policy meeting this Tuesday and Wednesday. Most economists expect interest rates to remain unchanged, despite rising concerns over an economic slowdown. The latest nonfarm payrolls report showed a solid gain of 177,000 jobs in April, suggesting continued labor market resilience.

In my view, the Fed is boxed in. Cutting rates now could be seen as yielding to political pressure; staying put risks deepening a slowdown. It’s a delicate balancing act, and Powell appears determined to hold his ground.

Beyond monetary policy, Trump also floated a more aggressive trade stance. When asked about tariffs, he said companies are moving production back to the U.S. and did not rule out making tariffs permanent. That’s a significant shift. Traditionally, tariffs are used as temporary measures in response to specific trade disputes. Making them permanent would mark a structural pivot—potentially reshaping global supply chains and reinforcing the trend toward de-globalization.

Trump also repeated his hardline stance on undocumented immigration and dismissed legal concerns, saying, “I don’t know,” when asked if he had a constitutional obligation to uphold due process. He added that he would defer to his legal team and the Supreme Court’s rulings.

As for a possible third term—which the Constitution forbids—Trump was more definitive this time. “It’s not something I want to do,” he said, before naming Vice President