17.07.2025 00:49

During a White House meeting with Republican House members, President Donald Trump reportedly broached the subject of firing Federal Reserve Chairman Jerome Powell. Sources familiar with the private gathering revealed that the suggestion garnered considerable support from those present, with some claiming Trump strongly implied his intention to act.

This discussion followed a Republican House block on a vote advancing cryptocurrency legislation, a bill President Trump had previously endorsed. The bill's future remains uncertain, adding to the already heightened political tensions in Washington D.C., fueled further by Trump's comments concerning Powell. While federal law dictates that a Fed chair can only be removed for "good cause," the legal interpretation of this clause remains untested. The potential for market instability resulting from such a dismissal is substantial, impacting global financial markets significantly.

Although administration sources confirmed to CBS News that Trump has explored this possibility both publicly and privately, the White House hasn't initiated any formal removal procedures. Trump's recent criticisms of Powell have intensified, culminating in yesterday's scathing remarks to reporters. He labelled Powell "Mr. Too Late," criticizing his perceived slowness in reducing interest rates, adding that "he's awful," comparing him unfavorably to an inanimate object.

Further fueling the controversy, Trump has also targeted the Federal Reserve's multi-billion dollar headquarters renovation, alleging mismanagement and using this as potential grounds for Powell's dismissal. These accusations, however, are strongly denied by Chairman Powell himself. The situation underscores the ongoing power struggle and uncertainty surrounding economic policy within the current administration. Information obtained from internet sources.