Trump says he has no plans to fire Fed Chair Powell

07/20/2025 / By Laura Harris

President Donald Trump said it is “highly unlikely” he will fire Fed Chair Jerome Powell, walking back from private discussions the night before where he appeared open to the idea.
At a White House meeting on July 15, Trump discussed the “concept” of removing Powell with a group of far-right House Republicans, many of whom urged him to act.
Tensions have escalated over a $2.5 billion renovation of the Fed’s headquarters, which Trump and allies have cited as mismanaged, though Powell has called for an internal review.
GOP senators, including Thom Tillis and John Kennedy, defended Powell’s independence and warned against politicizing the Fed, emphasizing the need for central bank autonomy.
While Trump waved a draft dismissal letter during the meeting, aides confirmed it was a symbolic gesture, and no official steps have been taken to remove Powell, whose term runs through May 2026.

President Donald Trump clarified on Wednesday, July 16, that it was “highly unlikely” he would fire Federal Reserve Chair Jerome Powell – a public reassurance that came less than a day after he privately signaled to House Republicans that he was seriously considering dismissing the head of the central bank.

Powell, initially nominated to the post by Trump in 2017 and later reappointed by former President Joe Biden in 2021, is currently serving a second four-year term. The chair himself has repeatedly stated his intention to serve his full term, which runs through May 15, 2026.

Recent reports suggested the imminent ousting of Powell over the mismanagement of the $2.5 billion renovation of the Fed’s historic headquarters in Washington.

However, Trump told reporters in an Oval Office meeting with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa that he had no immediate plans to remove Powell, “unless he has to leave for fraud.” The president also acknowledged that he discussed the idea Tuesday night, July 15, with about a dozen Republican lawmakers during a White House meeting on cryptocurrency legislation.

“Almost every one of them said I should,” Trump said of the lawmakers, many of whom have aligned with his ongoing criticism of Powell for refusing to aggressively cut interest rates. “I don’t rule out anything, but I think it’s highly unlikely unless he has to leave for fraud.” (Related: Fed Chairman Jerome Powell already rebelling against Trump, says he won’t resign from running America’s private central bank.)

According to a White House official familiar with the meeting, Trump appeared to be leaning in favor of firing Powell at the time and even brandished a draft letter that would initiate the process, though the letter was described as a prop, drafted by someone else. The official emphasized that Trump has not formally prepared any document to remove Powell. Both the official and a second source familiar with the meeting spoke on condition of anonymity, citing the private nature of the conversation.

GOP divided on Powell: Far-right pushes for firing as Senate Republicans urge caution

The lawmakers who attended the White House meeting were primarily from the far-right wing of the Republican Party, including members of the House Freedom Caucus, whose views often diverge from those of more mainstream Republicans.

In contrast, Senate Republicans have taken a more cautious stance, with some expressing support for Powell’s leadership at the Fed while awaiting the outcome of an inspector general’s review of the central bank’s renovation project.

“If anybody thinks it would be a good idea for the Fed to become another agency in the government subject to the president, they’re making a huge mistake,” said Sen. Thom Tillis (R-NC) in a speech on the Senate floor Wednesday, claiming that if Powell is dismissed, “you are going to see a pretty immediate response.”

Other Republicans expressed varying degrees of support for Powell. Sen. John Kennedy (R-LA) said the Fed chair “has done a decent job,” even though they have not always agreed. “I don’t think he’s been perfect,” Kennedy said, “but I do believe that the chairman is calling them like he sees them.”

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Watch this video discussing the possibility of Congress filing an investigation over Jerome Powell.

This video is from the Evolutionary Energy Arts channel on Brighteon.com.