USA Trump Unlikely to Sack Federal Reserve Chair Powell

[webfact]

video screenshot

 

President Donald Trump indicated it's "highly unlikely" he'll dismiss Federal Reserve Chair Jerome Powell. The statement comes after Trump broached the possibility with Republican lawmakers, causing brief jitters in stock markets and a dip in the dollar.

 

Trump, who appointed Powell, has frequently criticised him for not lowering interest rates and labelled him a "knucklehead." However, he downplayed the idea of firing Powell unless there was a case of fraud.

 

Allies of Trump, including budget director Russell Vought, have questioned Powell's management, particularly concerning cost overruns in a Fed property renovation project.

 

Though Trump's criticism of Powell has shifted, creating a potential case against him, Deutsche Bank analysts note the risk of Powell being removed has increased. Trump has teased this move several times, but market reactions have often prompted a retreat.

 

Powell, whose term as chair ends next May, asserts his intention to serve out his term. The Federal Reserve defends its renovation costs, attributing them to unforeseen expenses like asbestos removal.

 

The White House's aggressive stance against the Federal Reserve could have significant implications for the global financial system. Experts warn political meddling in the Fed's leadership may undermine price stability and investor confidence.

 

Currently, the key interest rate set by the Federal Reserve is around 4.3%. Trump argues it should be lowered to boost the economy, contrasting with the cautious approach Powell advocates, especially amid concerns over tariffs and inflation.

 

Names floated as potential replacements for Powell include Treasury Secretary Scott Bessent and economist Kevin Warsh. Powell was initially nominated by Trump in 2017, with his term extended by President Joe Biden.

 

The Fed's independence remains a crucial aspect of its role, echoed by industry leaders stressing the dangers of political interference.

 

  Adapted by ASEAN Now from BBC 2025-07-18

 

 

[FlorC]

Trump keeps on disappointing.

 

Can't get rid of Powell , can't get interest rates down.

No audit of the FED.

No audit of the GOLD .

 

[RocketDog]

The last major step in the authoritarian playbook after capturing congress, intelligence, justice dept, military, police, national guard, judicial branch.

 Once in control of the Fed he is free to wreck the economy at will.

[JAG]

6 hours ago, webfact said:

 

The Fed's independence remains a crucial aspect of its role, echoed by industry leaders stressing the dangers of political interference

That all ends next May!

 

Now I wonder, of all those named in the OP, who has assets, properties and businesses which are so "leveraged" that a reduction in interest rates would be a great advantage?

[Srikcir]

"Fed Chair Powell responds to White House questions about HQ renovation", published July 17 2025.

https://www.cnbc.com/2025/07/17/powell-trump-vought-renovation.html

 

"Powell pointed to a newly launched page on the Fed’s public website dedicated to answering questions about the project, which is over budget. He also batted down accusations by OMB director Russell that the renovated buildings will feature luxurious amenities like a private elevator, VIP lunch rooms or a rooftop garden."

[Eric Loh]

If Trump is unlikely to sack Fed Chair Powell, stop talking about him as it send jitters to the market. The narcissistic bully just can't resist the urge to exhibit himself. 

[Srikcir]

How likely that Trump remembers next week that there is even a Federal Reserve Chairman?

https://www.independent.co.uk/

• "Donald Trump appeared not to recall having been the president who first appointed Federal Reserve Board of Governors Chair Jerome Powell to the position he has held since 2018 — the second year of Trump’s first term." 
• "president possibly remembered that he was the one who nominated Powell to the job as a successor to Janet Yellen during his first term, and added that he had been surprised by Powell’s re-appointment to a second term by his successor and predecessor, President Joe Biden."

[thaibreaker]

There is a reason this job is protected by the constitution, aka literally untouchable for any president (unless there is another reason to fire him, or your name is Donald Trump). Almost every country have their independent chief of their national bank reserves.

Let the experts do their jobs, you have done enough damage, Donald.