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President Donald Trump launched another sharp critique of Federal Reserve Chairman Jerome Powell on Wednesday, describing him as mentally unimpressive and revealing that he’s already narrowed down a list of possible successors.

“He’s an average mentally person… Low IQ for what he does,” Trump said during a press conference at the NATO summit in The Hague. “I think he’s a very stupid person, actually.”

Trump has repeatedly accused Powell of damaging the economy by refusing to lower interest rates, claiming the delay has cost the federal government hundreds of billions in added interest payments.

Although Trump originally appointed Powell in 2017, the current Fed chair was reappointed by President Joe Biden for a term that ends in May 2026. Still, Trump indicated Wednesday that he’s preparing for a leadership change. “Yeah, I know within three or four people who I’m going to pick,” he said, adding, “his term is up pretty soon fortunately, because I think he’s terrible.”

Powell has defended the central bank’s cautious approach, arguing that cutting rates too early could backfire, especially in light of Trump’s proposed tariffs. Economists anticipate those tariffs could drive inflation higher later this year—making premature rate cuts risky.

At a congressional hearing on Tuesday, Powell pushed back against calls for an immediate rate cut, saying most experts expect a “substantial wave of price increases” to reach consumers soon.

Commerce Secretary Howard Lutnick joined Trump in criticizing the Fed chair, writing on X: “Jerome Powell – your job is to help Americans not hurt them, so do your job and CUT our absurdly high interest rates at your next meeting.”

Tensions have also emerged within the Fed itself. Vice Chair for Supervision Michelle Bowman, another Trump appointee, said Monday that the economic risks posed by tariffs are overstated and called for swift rate cuts to support employment.

Fed Governor Christopher Waller echoed that sentiment Friday, suggesting any inflationary effects from tariffs would likely be short-lived. Chicago Fed President Austan Goolsbee added on Monday that the Fed might need to ease rates again if tariff-related inflation fails to materialize.

Still, Powell has warned that inflationary pressures could re-emerge this summer and urged caution. At its most recent meeting, the Fed opted to keep interest rates steady for the fourth straight time.

“If we make a mistake, people will pay the cost for a long time,” Powell warned in his testimony Wednesday.