Amid rising speculation over Fed Chair Jerome Powell’s removal, Trump says he has no plans to fire him — yet tensions persist.
Despite mounting speculation across U.S. media about the potential dismissal of Federal Reserve Chair Jerome Powell, President Donald Trump stated on Wednesday that he currently has no intention of removing him. Nevertheless, Trump’s critical tone toward Powell underscores the ongoing tension between the White House and the central bank.
Doubts Over Powell’s Future
On Wednesday, shortly after Bloomberg and The New York Times reported that President Trump was seriously considering removing the Fed Chair, the President clarified during a press conference in the Oval Office that such a decision was not imminent. His remarks came as a partial relief to financial markets that had been rattled by earlier headlines.
“I’m not planning to fire Powell,” Trump told reporters, while simultaneously criticizing the Fed Chair’s performance. “Rates should be lower. He’s doing a terrible job,” he added.
Repeated Criticisms with No Clear Action
Trump has repeatedly targeted the Fed’s monetary policy in recent months, demanding interest rate cuts and accusing Powell of failing to support the economy adequately. He has used harsh language to describe Powell, labeling him as “dumb,” “a stubborn mule,” and “a self-declared genius.”
Most recently, Trump referenced the $2.5 billion renovation of the Federal Reserve headquarters, suggesting that mismanaging such a project could be considered a fireable offense.
Behind the Scenes: Oval Office Discussions
According to media reports, Trump met privately with Republican members of the House of Representatives, during which he allegedly shared a draft letter to dismiss Powell and asked for their input. While the White House has not confirmed this, Bloomberg reported that the meeting was serious and that the idea of removing Powell is under real consideration.
Sources also indicated that Trump is already weighing potential replacements, should he decide to move forward.
Markets React to Uncertainty
U.S. financial markets quickly responded to the news of Powell’s possible dismissal with noticeable volatility. However, after Trump clarified that no final decision had been made and denied drafting any formal letter, markets regained some stability.
Investors remain wary of any perceived instability at the top of the Federal Reserve, as it could shake confidence in the government’s economic direction.
Possible Successors on the Table
While dismissing Powell remains only a possibility, Trump mentioned a few potential successors. Treasury Secretary Scott Bessent was one of the names floated, though Trump expressed reluctance to move him, saying, “He’s doing a great job. He’s a very soothing force.”
Meanwhile, multiple reports point to Kevin Hassett, Director of the National Economic Council, as a leading contender. Former Fed governor Kevin Warsh and current Fed governor Christopher Waller are also said to be in consideration.
Legal Challenges Ahead
If Trump decides to proceed with Powell’s removal, it could spark a legal battle. Experts argue that a Fed Chair can only be removed for specific legal reasons and not on a political whim. Powell himself has previously stated that his position is protected by law and that he intends to serve out his full four-year term.
Conclusion
As financial markets seek consistency in monetary policy, the ongoing friction between the White House and the Federal Reserve remains a source of concern. Although Trump has stepped back — for now — from firing Powell, the issue appears far from resolved.
