President Donald Trump disparaged Federal Reserve Chair Jerome Powell Wednesday, calling him "a knucklehead" because the Fed had not cut interest rates despite pressure by the president to do so, but said it was "highly unlikely" that he would fire him.
READ MORE: How Trump could use an expensive Fed building renovation to oust Powell
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 Trump's tariffs as the reason for maintaining interest rates.
Trump responded to reports that he had drafted a letter in preparation for 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.
WATCH: How an inflation uptick and Trump's pressure complicate the Fed's interest rate decision
Trump was responding to questions from journalists during a meeting with Bahrain's Crown Prince Salman bin Hamad Al Khalifa.