Trump Expresses Doubt on Firing Fed Chair Powell

In recent remarks, President Donald Trump stated it is "highly unlikely" he will dismiss Jerome Powell, despite having discussed the possibility with Republican lawmakers earlier. The U.S. stock markets experienced a minor dip following this news, but they rebounded quickly as Trump clarified his position.

Trump's ongoing criticisms of Powell, whom he appointed in 2017, have centered around calls for lower interest rates and accusations of poor management regarding the Fed's operations. The President referred to Powell as a "knucklehead" and reiterated his dissatisfaction with the Fed's performance. Although it seems the firing discussion has resurfaced, Trump mentioned he is not inclined to take action unless there are serious allegations such as fraud involved.

Jerome Powell's term as Fed chair is set to end next May, but he can remain a governor until 2028. Although Powell maintains that the president cannot fire him over policy differences, White House officials assert there is a possibility for removal for cause.

Treasury Secretary Scott Bessent revealed a formal process may already be underway to replace Powell, with potential candidates including himself, Kevin Hassett, and economist Kevin Warsh. Powell was nominated by Trump and had his term extended by former President Joe Biden in 2021.