Chicago – July 16, 2025
U.S. President Donald Trump said on Wednesday that he does not plan to fire Federal Reserve Chair Jerome Powell, despite recently criticizing him again. Trump did not completely rule out the idea of removing Powell, but he stated that it was unlikely unless Powell were involved in fraud.
This comment came after a Bloomberg report suggested that Trump might fire Powell soon, which caused a drop in stocks, the dollar, and an increase in Treasury yields.
Trump has frequently criticized Powell for not cutting interest rates, but he denied the Bloomberg report. He confirmed that he had discussed the possibility of firing Powell with Republican lawmakers on Tuesday. This marks the latest in Trump’s ongoing efforts to pressure the independent central bank and its leader.
Powell, who was nominated by Trump in 2017 and reappointed for a second term by President Joe Biden in 2021, has said he plans to serve his full term, which ends on May 15, 2026. A recent Supreme Court decision has made it clear that the Fed chair can only be removed “for cause,” not for disagreements over policy. There has been no evidence of fraud related to Powell or the Fed’s renovation project.
