Trump Denies Firing Powell: ‘Highly Unlikely
Trump denies Plans to Fire Fed Chair Powell Amid Conflicting Reports
Washington D.C. – President Donald trump on Wednesday denied any plans to fire Federal Reserve Chair Jerome Powell, stating it is “highly unlikely” and that “We’re not planning on doing it.” This statement comes just hours after reports surfaced that trump had informed Republican lawmakers of his intention to dismiss Powell.
According to a senior White House official who spoke on the condition of anonymity, Trump met with Republican lawmakers on Tuesday and inquired about their sentiment regarding firing the Fed Chair. Following expressions of approval from the lawmakers, the President reportedly indicated he would proceed with the action.The New York Times also reported that Trump had gone as far as drafting a letter to Powell, which he shared with lawmakers during the meeting.
The White house official stated, “the President asked lawmakers how they felt about firing the Fed Chair.They expressed approval for firing him. The President indicated he likely will soon.”
A Federal Reserve official declined to comment on the reports of the meeting. The timing of the alleged discussion followed a procedural vote on crypto legislation, which Republicans blocked, a move the President favors.
Powell himself has previously asserted that his removal from office is ”not permitted under the law.” Historically, no president has attempted to fire a Fed chair, although criticism of central bank leaders has occurred in the past.
Market reactions to the news were reportedly muted, with stocks turning flat and Treasury yields experiencing a slight decline, particularly on shorter-duration issues.
The Trump governance has been vocal in its criticism of Powell and the Federal reserve, advocating for lower interest rates. Recent attacks have focused on renovations to the Fed’s Washington headquarters,fueling speculation that Trump might seek to remove Powell for cause. However, a recent Supreme Court decision has indicated that the president dose not possess the authority to remove Fed officials at will.
Despite the President’s denials, some Republican lawmakers have offered conflicting signals. rep. French Hill, chair of the House Financial Services Committee, reiterated on CNBC that he “don’t see” Trump firing powell. Treasury Secretary Scott Bessent also told Bloomberg News on Tuesday that he did not anticipate such a move.
Conversely, Rep. Anna paulina Luna, a Florida Republican who participated in blocking the crypto initiative, posted on social media platform X that a move against Powell is imminent. “Hearing Jerome Powell is getting fired! From a very serious source,” she stated, later adding, “I’m 99% sure firing is imminent.”
trump nominated Powell to lead the Federal Reserve in November 2018, succeeding Janet Yellen. Powell’s confirmation by the Senate occurred the following February. Trump has frequently criticized Powell throughout his presidency, including his decision to hold interest rates steady after a period of cuts in late 2024. Trump has accused Powell of being politically motivated, suggesting the 2024 rate cuts were intended to benefit Democratic nominee Kamala Harris.
“That goes for his board too, because his board is not doing the job as they should,” Trump commented on Wednesday.
Trump appointed Powell, along with governors Michelle Bowman and Christopher Waller. While Bowman and Waller have indicated a willingness to consider rate cuts,their proposed pace differs from Trump’s desire for a significant reduction of up to 3 percentage points in the central bank’s overnight borrowing rate,currently targeted between 4.25%-4.5%.