17.07.2025 01:34
A senior White House official revealed a plan by President Trump to potentially dismiss Federal Reserve Chairman Jerome Powell, igniting a flurry of speculation. This bombshell development, initially reported by CBS News, surfaced during a late-night meeting with Republican congressional representatives. While the majority of attendees expressed support for such a move, the official emphasized that the decision remains tentative, leaving room for a change of heart from the President.
Trump's dissatisfaction with Powell stems from the Fed's monetary policy, particularly its stance on interest rates. His reported search for a successor underscores the seriousness of his intent, despite Powell's term officially extending until May 2026. This news gained further traction when Representative Anna Paulina Luna tweeted her own strong belief in Powell's impending dismissal, expressing near-certainty about an imminent impeachment. The context of this discussion was a meeting concerning an opposed cryptocurrency bill, highlighting the interconnectedness of seemingly disparate political issues.
Adding fuel to the fire, Trump publicly condemned the extensive renovations at the Federal Reserve's Washington headquarters, decrying the expense as extravagant and inappropriate for a government building. His criticisms extended directly to Powell herself, using strong language to express his disapproval. However, Powell swiftly countered these accusations, refuting media reports as inaccurate and demanding a formal investigation by the Fed's inspector general. She firmly asserted her position, citing the Federal Reserve Act to emphasize that the President lacks the legal authority to remove her without just cause.
The potential dismissal of Powell carries significant implications, extending beyond the immediate market volatility it would likely trigger. Experts, such as Jim Bianco, President of Bianco Research (name withheld as requested), anticipate considerable debate over the presidential authority to influence independent institutions. This event raises crucial constitutional questions about the balance of power and the independence of the Federal Reserve, a central pillar of the US financial system. The situation remains fluid, with the President's final decision holding significant weight for the nation's economy and political landscape.
