Trump ‘Likely’ to Fire Jerome Powell, White House Official Says
In a dramatic Oval Office meeting, former President Donald Trump reportedly told Republican lawmakers that he is likely to fire Federal Reserve Chair Jerome Powell — a move that would send shockwaves through financial markets and challenge legal precedent. The statement came during a tense discussion following the GOP’s block on a pro-crypto vote, adding even more layers to Trump’s ongoing feud with Powell and the Federal Reserve.
Let’s break down what’s happening, why Powell is in Trump’s crosshairs, and what firing a Fed Chair could mean for America’s financial stability.
What Sparked the Latest Powell Drama?
According to a senior White House official who spoke to CNBC on condition of anonymity, Trump asked lawmakers Tuesday night in the Oval Office how they felt about removing Powell. Their response: enthusiastic approval.
“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,” the official said.
No exact timeline has been revealed, and the firing does not appear imminent — but the threat is very real.
Key Context:
- The conversation happened after GOP lawmakers blocked a crypto bill Trump supports.
- Powell has come under fire for keeping interest rates higher than Trump prefers.
- Renovations to the Fed’s headquarters have been a new point of attack from the Trump camp.
A History of Trump vs Powell
Trump appointed Powell in 2018, but the bromance ended swiftly. The former president has repeatedly criticized Powell for raising interest rates during his term, which Trump claimed slowed economic growth.
| Year | Event | Trump’s Response |
|---|---|---|
| 2018 | Powell appointed by Trump | Praise for initial monetary stance |
| 2019 | Fed raised rates | Trump tweeted: “Powell has no guts, no sense, no vision.” |
| 2020 | Pandemic rate cuts | Tense truce, but no love rekindled |
The Powell-Trump relationship has been rocky at best, with Trump often accusing the Fed of sabotaging the economy.
“We don’t have a Fed that knows what they’re doing,” Trump once tweeted during his presidency.
What Does the Law Say About Firing Powell?
According to a recent Supreme Court decision, the president does not have the authority to fire Federal Reserve officials at will. The Fed Chair serves a four-year term and can only be removed “for cause.”
Legal Takeaways:
- No precedent: No president has ever fired a Fed Chair.
- Statutory protection: Federal Reserve Act limits arbitrary removal.
- Powell’s own words: “My firing is not permitted under the law.”
Still, this hasn’t stopped Trump from exploring potential legal loopholes.
Mixed Signals from GOP and Administration
While some Republican lawmakers like Rep. Anna Paulina Luna seem all-in — claiming on X, “I’m 99% sure firing is imminent” — others aren’t so convinced.
- Rep. French Hill, House Financial Services Chair: “I don’t see Trump firing Powell.”
- Treasury Secretary Scott Bessent: Also dismissed the likelihood in interviews with Bloomberg.
This leaves the public in limbo. Is it real or just more Trump-style pressure politics?
Why Powell is Under Fire Again
This time, it’s not just about interest rates.
Trump’s Main Grievances:
- High Borrowing Costs: Trump argues that Powell’s refusal to lower rates is stalling growth.
- Crypto Politics: Powell’s cautious stance on digital assets is clashing with Trump’s pro-crypto base.
- Fed Headquarters Renovations: Trump’s team calls it an irresponsible use of taxpayer money.
Could a Firing Impact Financial Markets?
Absolutely. Even the suggestion of firing Powell could roil markets. Investors depend on central bank stability. Removing a Fed Chair — especially in an election season — could rattle:
- Bond yields
- Stock prices
- Consumer confidence
“Market stability depends on confidence in the Fed’s independence,” said a Bloomberg analyst.
What Comes Next?
Here are the likely scenarios we could see unfold:
Scenario 1: Trump Fires Powell
- Legal challenge ensues.
- Markets enter panic mode.
- Supreme Court ultimately blocks the removal.
Scenario 2: Trump Pressures Powell Publicly
- More social media and rally criticism.
- No actual firing, but Fed’s independence is questioned.
Scenario 3: Nothing Happens
- Trump moves on to the next controversy.
- Powell finishes his term in 2026.
What This Means for You and Me
If you’ve got a mortgage, credit card, student loans, or any investment portfolio — this isn’t just political drama. This could hit your wallet. Interest rates influence everything from how much you pay at the pump to whether you can afford that new home.
As someone who’s been watching this saga unfold for years, I can’t help but feel like we’re in a weird political remake of The Big Short. Except this time, it’s the central bank that’s on the hot seat.
Powell in the Crosshairs
Whether or not Trump goes through with the Powell firing, one thing is clear: the central bank is becoming a battlefield. And for better or worse, that affects every American’s financial future.
We’ll be watching closely to see how this plays out.
