Trump Denies Plans to Fire Fed Chair Powell
U.S. President Donald Trump refuted reports of intending to dismiss Federal Reserve Chair Jerome Powell, causing fluctuations in stocks and Treasury yields. Trump criticized Powell for not cutting interest rates but stated firing him is 'highly unlikely' unless for fraud.
Fed Chairman Jerome Powell testified before the Senate Committee on Banking, Housing, and Urban Affairs on Capital Hill on June 25. U.S. President Donald Trump stated he has no plans to fire Powell, despite a Bloomberg report suggesting otherwise causing a drop in stocks.
Trump mentioned it is highly unlikely Powell will be fired unless for fraud related reasons, referencing recent criticism over renovation cost overruns at the Fed's headquarters. Stocks and Treasury yields recovered after Trump's comments, where he criticized Powell for not cutting interest rates.
While Trump discussed the possibility of firing Powell with some Republican lawmakers, he indicated a more cautious approach. Powell, nominated by Trump in 2017 and later by Biden for a second term, plans to serve until May 15, 2026.
Last week, the White House criticized the Fed's management, prompting Powell to request a review of the renovation project by the central bank's inspector general.
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