Trump Reportedly Pitches Idea Of Firing Fed Chair Jerome Powell To House Republicans

President Donald Trump reportedly floated the idea of firing Federal Reserve Chair Jerome Powell during a meeting with House Republicans on Tuesday night and received backing from the group.

According to a report by CBS, Trump made the comments to Republican House members in the Oval Office after they blocked a procedural vote that would have advanced cryptocurrency legislation favored by Trump in the House. Another report by Bloomberg said that Trump is likely to fire the Fed Chair soon but hasn’t made up his mind yet.

Trump has repeatedly expressed his frustration with the Fed Chair. As recently as Tuesday, Trump called Powell “terrible.” He has repeatedly asked the central bank to reduce interest rates by at least three percentage points to lower borrowing costs.

Trump previously stated that he wouldn't force Powell out, although he has called on Powell to resign before the end of his term as chair in May 2026. "The fake news is saying, 'Oh, if you fired him, it would be so bad, it would be so bad.' I don't know why it would be so bad, but I'm not going to fire him," the president said earlier this month.

So far through Trump’s second term in office, Powell has maintained that the Fed will not reduce rates until it is confident that inflation is under control, especially in lieu of Trump’s tariffs.

Powell’s term is in place till May 2026, and removing a Federal Chair is not something that has been previously legally tested. Federal law says the chair can only fire “for cause.” 

Industry leaders and market watchers have warned that removing Powell could be bad for the U.S. economy.

On Tuesday, JPMorgan Chase CEO Jamie Dimon emphasized the importance of the Federal Reserve’s independence during the bank’s second-quarter earnings call, warning that political interference with the central bank could have “adverse consequences.”

“Well, from what I’ve seen the president has said he [is] not going to try to remove Jay Powell,” Dimon said during the bank’s second quarter (Q2) earnings call. “The independence of the Fed is absolutely critical, and not just for the current Fed chairman, whom I respect, Jay Powell, but for the next Fed chairman.” 

Read also: Elizabeth Warren Slams Nvidia, Trump Administration Over Resumed H20 Chip Sales To China

For updates and corrections, email newsroom[at]stocktwits[dot]com.