President Trump indicated on Tuesday he would let Jerome Powell serve out his term as Federal Reserve chair, saying "he's going to be out pretty soon anyway."

The comment comes as the president has relentlessly attacked Powell in recent weeks for not cutting interest rates.

Last week, Trump floated the idea of firing Powell before retreating somewhat and adding he's "not planning" to fire the Fed chair, though without fully ruling it out. An attempt to fire Powell could spark a legal battle, because the Federal Reserve is set up to function as an independent body free of political interference. Such a move would likely also roil financial markets.

On Tuesday, while answering questions from reporters, Trump again attacked Powell for being too cautious on cutting interest rates.

"I call him too late. He's too late all the time," Trump said. "He should have lowered interest rates many times."

He went on to say that Powell is leaving his post soon enough anyway, indicating he was willing to wait out his term as chair of the Fed, which ends on May of next year.

Despite the president's attacks, Powell has been adamant he intends to serve out his term as chair.

The Fed has held interest rates steady this year in large part over concerns that President Trump's tariffs could spark an increase on inflation. That's after cutting rates by a full percentage point between September and December last year.

With concerns over inflation rising again, the Fed is seen as unlikely to cut rates at its next policy meeting later this month. In June, consumer prices rose 2.7% from a year ago, a faster annual clip than in the previous month. Policy makers had previously indicated they may consider cutting rates by half a percentage point later this year.

Trump administration steps up pressure on Powell

Top government officials have also stepped up their criticism of Powell's tenure at the Fed.

On Monday, in a post on social media platform X, Treasury Secretary Scott Bessent called for "a review" of the Fed's operations, saying the central bank had excessively extended its purview into areas outside of its core job of setting interest rates.

Bessent also called for a review of the Fed's renovation project, which President Trump and some Republican lawmakers have seized on to further attack Powell.

The Fed is embarking on a makeover of its offices in Washington, D.C., with the cost of the project soaring from $1.9 billion to $2.5 billion in recent years.

Powell has pushed back against some of the most sensational claims of the renovations as exaggerated. The Fed has attributed the cost overruns to unexpected developments like excess lead and asbestos, as well as inflation, which has raised the cost of building projects nationwide.

Powell has also asked the Fed's inspector general to review the project, in an effort to address complaints about the price tag.

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