Oklahoma Rep. Frank Lucas, a key House Republican who leads the monetary policy working group, told Yahoo Finance he still supports Federal Reserve Chair Jerome Powell. Lucas said Powell has “done an exceptional job under the circumstances” and called his tenure “the most complicated since the 1930s.”
Lucas said he expects Powell to serve out his term, which ends in May 2026. “We’ll know who President Trump is going to nominate by then,” he added.
Trump’s Ongoing Criticism of the Fed
President Donald Trump has repeatedly criticized Powell and the Fed for not cutting interest rates faster. On Truth Social, Trump wrote: “Powell came in too late, what’s the problem? There is no inflation, and the prices of gasoline, energy, groceries, and just about everything else are falling!!! The Fed must lower interest rates, just like Europe and China are doing.”
Last week, Trump called Powell “a fool” who “knows nothing.” The White House considered removing Powell from his post, but Trump appeared to rule out that move earlier this month.
Presidential Views on Fed Policy
Lucas said presidents have long voiced opinions on Fed policy. “With the exception of President Eisenhower, every president since 1913 has had strong views,” he noted. He added that Trump is “perfectly within his rights” to speak out and said Powell’s job is “very complex and difficult.”
No Major Structural Changes Expected
As head of the House Monetary Policy, Treasury Market Resilience and Economic Prosperity Working Group, Lucas is reviewing whether the Fed’s focus should shift more toward inflation control. He said the Federal Reserve Act of 1913 remains “solid,” though its dual mandate—price stability and maximum employment—may face debate.
“I think there may be discussion of employment mandates,” Lucas said. “But it’s hard to believe anything will change.”
He also supports the Trump administration’s push to give the Office of Management and Budget authority over new financial regulations. Trump’s February executive order left monetary policy with the Fed but required OMB approval for other rules. Lucas praised that move, saying it would keep the Fed focused on its core mission.
Treasury Market Volatility Under Review
Lucas’s working group will hold a hearing on Thursday to examine recent swings in the Treasury market. He said the market today is “seven to eight times more volatile than it was 30 years ago,” and there are fewer primary dealers to ensure liquidity.
“We want the Treasury to be calm, smooth, liquid, deep and a little boring,” Lucas said. He hopes expert testimony will identify what triggers sudden sell-offs and suggest regulatory fixes to prevent a major crisis.
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