President Trump suggested to a group of Republican lawmakers that he is planning to fire Federal Reserve Chair Jerome Powell, according to a senior White House official who spoke to The Hill.
The comment was made during a Tuesday evening Oval Office meeting with 11 hardline House Republicans, who earlier in the day staged a floor revolt over concerns related to three cryptocurrency bills.
“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. A second source familiar with the conversation confirmed that account.
Later, speaking from the Oval Office, Trump denied reports suggesting he’s preparing to remove Powell, walking back previous hints that he might do so.
“I don’t rule out anything but I think it’s highly unlikely. Unless he has to leave, fraud,” Trump told reporters. He also said he has not drafted a letter to remove Powell.
Markets pulled back on Wednesday as reports circulated that Trump may be moving closer to firing Powell. The S&P 500 slipped into the red, CNBC reported.
Trump has long expressed frustration with Powell, mainly over the Fed’s refusal to cut interest rates—something Powell has attributed to economic uncertainty caused by Trump’s aggressive trade policies.
Recently, White House officials have shifted attention to the cost of renovations at the Federal Reserve’s Washington, D.C., headquarters and Powell’s testimony regarding the spending. This has raised speculation that Trump and his allies may be looking for grounds to remove Powell before his term expires next May.
Asked Tuesday in Pennsylvania if he would fire Powell, Trump responded, “I think he’s terrible. I think he’s a total stiff. But the one thing I didn’t see him is a guy that needed a palace to live in.”
When pressed further about whether the $2.5 billion renovation is grounds for dismissal, he added, “I think it sort of is.”
Any attempt to remove Powell could spark a legal fight. It remains unclear whether a president has the authority to fire the Fed chair without cause, and Powell has consistently said he will not resign before his term concludes.
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