Trump Dismisses Rumors of Powell Removal, Cites Legal Constraints

US President Donald Trump has officially dismissed rumors that he plans to dismiss Federal Reserve Chairman Jerome Powell. Trump, who has been vocal about his dissatisfaction with Powell's performance, stated that Powell is "doing a terrible job." However, he clarified that he will not be removing Powell from his position and will instead wait for Powell's term to end in eight months. This announcement comes after weeks of speculation and debate surrounding Trump's intentions towards Powell.

Trump's comments on Powell's performance have been consistent, with the president frequently criticizing the Federal Reserve's monetary policy decisions. Trump has accused Powell of making interest rate cut decisions to benefit Democrats politically. He has also expressed his surprise at Powell's appointment, stating, "I was surprised she was appointed." Trump directed his main criticism at President Joe Biden, arguing that Powell should not be reappointed for a second term.

The idea of a president removing a Federal Reserve chair is legally untested, as federal law states that the chair can only be fired "for cause." This means that Trump would need a valid reason, such as misconduct or incompetence, to legally remove Powell from his position. The potential removal of Powell has been a topic of discussion among lawmakers and political analysts, with some expressing concern over the potential implications for the independence of the Federal Reserve.

Trump recently asked Republican members of Congress during a closed-door meeting whether they should consider firing Powell. Some in the room suggested Trump was serious about the matter and might take action. However, according to constitutional authority, a president does not have the authority to directly fire a Fed Chair. Trump's latest comments suggest that he does not intend to take any action to remove Powell before his term ends in May 2026.