Wed, 16 Jul 2025

Wed, 16 Jul 2025 Trump discussed firing Fed boss but 'highly unlikely' he will

The US president admitted he broached sacking Jerome Powell, in what would be an unprecedented move.
President Trump has downplayed the possibility of firing Federal Reserve Chairman Jerome Powell, calling it "highly unlikely" unless he's found guilty of fraud. This comes after reports emerged that Trump had considered sacking Powell, which sent stock markets and the dollar tumbling. Trump has repeatedly clashed with Powell over interest rates, calling him a "knucklehead" who is doing a "lousy job". However, he insists he has no intention of removing Powell from his position. Powell's term as Fed chair ends in May next year, but he can stay on as a governor until 2028. Trump would need to show "cause" for removal, which typically implies serious misconduct. Analysts warn that Trump's attacks on Powell are escalating and could undermine the independence of the Federal Reserve, which is crucial for maintaining price stability and investor confidence. The controversy has added to concerns about Trump's handling of economic policy, particularly his trade wars with other countries. The US economy is slowing down, and economists have warned that Trump's tariffs could fuel inflation. Powell has maintained that he intends to serve out his term as Fed chair, despite Trump's criticism. The Federal Reserve has also pushed back against the attacks on Powell, saying the renovations of its buildings will ultimately reduce costs by allowing it to consolidate operations. The White House's aggressive stance against the Federal Reserve is raising concerns about the impact on global financial markets.
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