From PBS NewsHour.

President Donald Trump disparaged Federal Reserve Chair Jerome Powell Wednesday, calling him “a knucklehead” because the Fed had not cut interest rates and alluded to “fraud” by the Fed chair but said it was “highly unlikely” that he would fire him.

Trump has been frustrated with the Federal Reserve’s refusal to lower interest rates, which the president says would save the federal government trillions of dollars in borrowing costs and spur economic growth. The Federal Reserve has kept rates at between 4.25 and 4.5% – unchanged since December. Powell has cited the risk of inflation because of tariffs as the reason for maintaining interest rates.

Trump responded to reports that he had drafted a letter in preparation of firing Powell. He denied that he was preparing to fire Powell, saying he was "highly unlikely" to do so "unless he has to leave for fraud," suggesting that Powell had misused funds in a $2.5 billion renovation of the Fed’s headquarters.

Trump was responding to questions from journalists during a meeting with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa.

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