US President Donald Trump has reportedly drafted a letter to fire Federal Reserve Chair Jerome Powell, according to a New York Times report. Trump met with roughly a dozen House Republicans on Tuesday night, polling them as to whether he should do it and indicating that he likely would, The Times reports.
The president has previously called on Mr. Powell to resign, stating that he has not done enough to lower interest rates. As recently as Friday, Mr. Trump said he had no plans to fire Mr. Powell, despite saying the Fed chair was doing a “terrible job.” The mounting pressure on the current Federal Reserve chair has become more serious. Murmurs of Powell’s potential resignation have started to gain mainstream attention as well. Powell has long been under pressure to cut Fed rates immediately, an order that he has been defying. This pressure has now become palpable, as President Donald Trump has openly criticized Powell, stating his desire to appoint a new Fed chair.
Back in April, President Trump explored whether he had the ability to fire Fed Chair Jerome Powell. Indeed, economic advisor Kevin Hassett told reporters, “The president and his team will continue to study that matter.” Trump had accused Powell of “playing politics” in his tirades against the chairman about not cutting interest rates. The Fed chair, however, insists that the decision wouldn’t be a safe one with inflation still a threat to the US economy.
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Furthermore, US Representative Anna Paulina Luna, Republican of Florida, posted on X while the meeting was going on that, “Jerome Powell is going to be fired. Firing is imminent.” Trying to fire Mr. Powell would be a major escalation in the administration’s campaign against the Fed. Currently, Presidents are unable to remove officials at the Fed without cause, although that is a rule that Trump tried to change earlier this year. Powell’s term as chair officially ends in May 2026. However, he can stay on as a member of the Board of Governors until 2028 if he chooses to.