The possibility that US President Donald Trump may proceed immediately with firing Federal Reserve Chairman Jerome Powell cannot be ruled out, according to a senior White House official cited by Bloomberg.
Although Republican lawmakers have expressed their support for such an action – which is estimated would disrupt financial markets and lead to serious legal confrontation – Trump has not yet made a final decision and could change his mind, according to the same source.
The American president’s dissatisfaction with Powell is not unknown, as Trump has repeatedly expressed his displeasure with the Fed’s decision to keep interest rates unchanged, while government officials have confirmed in recent days that the process of searching for Powell’s successor has begun, whose term as chairman expires in May 2026.
The discussion about Powell’s future took place during Trump’s meeting with Republican lawmakers who had earlier that same day voted against a cryptocurrency bill. The information was first reported by CBS News.
It’s worth noting that in recent days President Trump has publicly accused Powell of excessively luxurious renovations to Fed buildings, speaking of waste and cost overruns that he characterized as “completely disgraceful.”
When asked by reporters if this constitutes grounds for dismissal, Trump responded: “I think that’s kind of the way it is,” without however clarifying whether he intends to dismiss Powell because of this matter.
However, Powell himself has rejected the related reports as inaccurate regarding the renovations and formally requested the Fed’s inspector general to investigate the matter, while at the same time, it should be noted that according to the Federal Reserve Act, members of the Board of Governors, including the chairman, cannot be removed except “for cause.” “No one can remove us without cause,” Powell emphasized in April.
