Trump Likely to Fire Fed Chair Jerome Powell Soon, Reports Say

As the tussle between the United States President and Fed Chair escalates, there are reports that Donald Trump may soon fire Federal Reserve Chair Jerome Powell, as per Bloomberg citing a White House official. While some lawmakers support this move, it could disrupt financial markets and lead to a legal battle. However, Trump has not made a final decision and could change his mind. The process to select a successor to Powell, whose term ends in May 2026, is already underway.

Trump has been critical of the Federal Reserve's decision to keep interest rates unchanged, expressing frustration over their stance. The central bank is hesitant to cut rates until the impact of Trump's tariffs on inflation is clear. Despite Trump's calls for Powell's resignation, the president lacks the authority to remove him over a monetary policy disagreement.

Powell, nominated by Trump in 2017 and later by President Biden for a second term, has stated his intention to complete his tenure as Fed chief. Recently, the White House criticized the Fed's management, citing concerns over cost overruns in a renovation project at the Fed's headquarters in Washington. Powell responded by requesting an internal review of the project.