The conflict between former U.S. President Donald Trump and current Federal Reserve Chair Jerome Powell has intensified. In a September 9 interview with Fox News, Trump stated that he made an error in judgment regarding his selection for Fed Chair during his first term.

"I made a mistake. He (Powell) was just a backup, if you will," Trump said. "I made a mistake because my Treasury Secretary wanted him very, very badly. You know, I didn't have a good feeling about him, but sometimes you listen to others. That was a mistake, a big mistake."

Trump subsequently discussed Kevin Warsh, his recent nominee for the next Fed Chair position, stating he believes Warsh would perform excellently.

Powell was nominated as Fed Chair during Trump's first presidential term, taking office in February 2018. He later received a nomination for reappointment during the Biden administration, with his current term set to conclude on May 15. Trump has repeatedly criticized Powell publicly regarding Federal Reserve monetary policies and threatened to remove him from his position.

On January 9, the U.S. Department of Justice served a subpoena to the Federal Reserve, threatening criminal prosecution against Powell for his June 2025 testimony before the Senate Banking Committee concerning the Fed office renovation project. Powell subsequently issued a statement describing the federal prosecutor's charges as "pretext," directly stating the investigation resulted from the Fed "not following the President's wishes" on interest rate setting. On January 29, Powell stated during a press conference that future Fed monetary policy decisions would be data-dependent, advising the next Fed Chair: "Don't get involved in election politics. Don't do it."

Under U.S. statutory procedures, the Federal Reserve Chair is nominated by the President and confirmed by the Senate before taking office.