President Trump has escalated his criticism of Federal Reserve Chair Jerome Powell, stating he might still fire the current Fed leader while maintaining his January timeline for announcing Powell's replacement. Speaking at a press conference at his Mar-a-Lago resort, Trump declared that Powell "should resign" and expressed his desire to remove him from the position.

Firing Threats and Leadership Uncertainty

Trump's latest comments represent a significant escalation from his previous stance, with the president now openly considering Powell's dismissal. "Maybe I still might," Trump told reporters when asked about firing Powell, referencing his earlier consideration of Powell's ouster in July, which he abandoned after negative financial market reactions.

January Announcement Timeline Maintained

Despite the firing threats, Trump confirmed he maintains a preferred candidate for Fed Chair and will announce the selection "January sometime." The president indicated his choice "hasn't changed" but emphasized there's "plenty of time" for the announcement. This timeline allows for strategic positioning while keeping financial markets in uncertainty about Powell's immediate future.

Candidate Selection Process

Trump has not specified his leading chair candidate, though National Economic Council Director Kevin Hassett has been viewed as the frontrunner. Other potential candidates include former Fed governor Kevin Warsh, current Fed governors Christopher Waller and Michelle Bowman, and BlackRock's Rick Rieder. The president's decision-making process has featured contradictory statements, previously claiming he'd narrowed the pool to one candidate before indicating multiple contenders remain under consideration.

Policy Disagreements and Legal Threats

Trump's criticism centers on Powell's interest rate policy, with the president seeking more aggressive rate cuts to lower mortgage costs. While the Federal Reserve has reduced rates at its last three meetings, officials signaled only one rate cut likely in 2026. Trump announced he's considering a "gross incompetence" lawsuit against Powell related to an ongoing Fed renovation project, adding legal pressure to the leadership dispute.

Market and Economic Implications

The uncertainty surrounding Powell's position creates potential volatility for financial markets, particularly given Trump's previous retreat from firing Powell due to negative market reactions. Powell's decision to remain on the Fed Board through 2028, even if his chair term ends, would limit Trump's ability to reshape Fed leadership completely.

Recent developments in Russia-Ukraine peace negotiations have taken a concerning turn following Putin's announcement of a changed negotiating stance after alleged Ukrainian drone attacks on his residence, creating new obstacles for Trump's diplomatic efforts.

Putin Changes Negotiating Position

Putin informed Trump during their Monday phone call that Russia would reconsider previously reached agreements following what the Kremlin claims was a Ukrainian drone attack on a presidential residence. The Russian leader announced his decision to change his nation's negotiating stance, significantly complicating ongoing peace efforts.

Diplomatic Communications and Reactions

Trump addressed the situation while speaking to reporters in Florida, confirming that Putin had informed him of the alleged attack during their conversation. The US president claimed to be "extremely angry," potentially indicating alignment with Putin's position on the matter.

Ukrainian President Volodymyr Zelenskiy has strongly disputed the Russian claims, dismissing them as a "new lie" and warning that Moscow could be using the allegations as justification to prepare attacks on government buildings in Kyiv.

Current Negotiation Status

The latest developments represent a significant shift from Trump's previous assessment that only "one or two thorny issues" remained in the peace talks. Ukrainian officials have been working to update a 28-point draft plan initially proposed by the US, which was viewed as unduly advantageous to Russia.

International Response and Implications

Russian Foreign Minister Sergei Lavrov confirmed the alleged drone attack details and stated that Russia would retaliate with already selected targets. His Ukrainian counterpart, Foreign Minister Andrii Sybiha, characterized the claims as false justification for continuing the war.

Despite the setback, Putin indicated that Russia intends to work closely with the US on peace efforts, though the reconsideration of previously reached agreements adds complexity to Trump's campaign promise to resolve the conflict quickly.