Trump Says He’s ‘Not Planning On Doing Anything’ Following Powell Firing Rumors

President Donald Trump said he’s “not planning on doing anything” following reports of him floating the idea of firing Federal Reserve Chair Jerome Powell past House Republicans. 

“No, we’re not planning on doing anything,” Trump told reporters on Wednesday when asked if he wanted to fire Powell.

The markets were mixed in midday trade on Wednesday. The SPDR S&P 500 ETF (SPY) was trading flat with retail sentiment on Stocktwits in ‘bearish’ territory. Meanwhile, the SPDR Dow Jones Industrial Average ETF (DIA) rose 0.14% but the Invesco QQQ Series 1 Trust (QQQ) slipped 0.2%. 

Trump reportedly made the comments about Powell to Republican House members on Tuesday in the Oval Office after they blocked a procedural vote that would have advanced cryptocurrency legislation favored by Trump in the House. 

He floated the idea of firing Federal Reserve Chair Jerome Powell during the meeting and received backing from the group.

Industry leaders and market watchers have warned that removing Powell before his term ends in May 2026 could lead to turmoil in financial markets and spell bad news 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.”

Former Federal Reserve Governor Daniel Tarullo has also warned that removing the Fed Chair could cause a significant market sell-off.

This is not the first time that Trump has said 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.

Meanwhile, Powell has reinforced the legal position protecting his role as Fed Chair, stating, “Our independence is a matter of law. We’re not removed expect for cause. We serve very long terms, seemingly endless terms.”

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

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