Trump Denies Plans to Fire Fed Chair Powell but Expresses Frustration Over Policies

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering the USA

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Image Credit: Andrew Caballero Reynolds, AFP via Getty Image

In a swirl of speculation and political intrigue, President Donald Trump on Tuesday denied reports that he is on the verge of firing Federal Reserve Chairman Jerome Powell, despite privately polling Republican lawmakers about whether to remove him.

“No, I’m not talking about that,” Trump told reporters on July 16 at the White House. “Fortunately, we get to make a change in the next eight months or so,” he added, referring to the conclusion of Powell’s term as chairman in May 2026.

According to a senior White House official, Trump informed GOP lawmakers during an Oval Office meeting Tuesday night that he had considered dismissing Powell, asking for their views on the matter. “Almost all of them said I should,” Trump recounted, “but I’m more conservative.” He dismissed media reports suggesting an imminent firing as “not true.”

For months, Trump has sharply criticized Powell for maintaining the Federal Reserve’s benchmark interest rates rather than cutting them, branding him as “too late” in responding to economic challenges. The president, however, stopped short of committing to a drastic move, saying, “I don’t rule anything out, but I think it’s highly unlikely unless he has to leave for fraud.”

Trump has recently amplified scrutiny over the Fed’s $2.5 billion headquarters renovation project, calling the ballooning costs “disappointing” and hinting without evidence that possible financial mismanagement could justify Powell’s removal. The renovation’s price tag has risen more than 33% since its original 2019 estimate, due to design changes, material and labor costs, and unexpected issues like asbestos and toxic soil contamination, the Fed said over the weekend.

Despite his criticism, Trump appeared to conflate Powell’s appointment history, incorrectly asserting that former President Joe Biden appointed and extended Powell’s term. In reality, Trump himself nominated Powell to the Fed Board of Governors in 2017 during his first term.

The Federal Reserve, an independent agency tasked with stabilizing the economy by adjusting interest rates, declined to comment on speculation about Powell’s future but pointed to Powell’s repeated assurances that he intends to serve his full term.

Inflation pressures continue to weigh on policy decisions. The Labor Department reported Tuesday that inflation rose 2.7% over the past year, the highest annual rate since February, partly fueled by Trump’s own tariff policies.

Whether Trump even has the legal authority to fire Powell remains uncertain.

In a May 22 ruling, a majority of Supreme Court justices signaled that the Fed’s unique, quasi-private structure likely insulates Powell from at will removal by a president. Powell’s chairmanship ends in 2026, but he could remain on the Fed’s board until 2028. For now, Trump’s words leave Powell’s future clouded by political tension but legally unresolved.