President Trump speaks to reporters during a meeting with Bahraini Crown Prince Salman bin Hamad Al Khalifa in the Oval Office of the White House on Wednesday.
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President Trump says he hasn’t ruled out firing Federal Reserve Chairman Jerome Powell, who he’s been frustrated with for months for not lowering the interest rate.
The Fed has been cautious about interest rates as it assesses the impact of Trump’s tariffs on inflation. Consumer prices were up 2.7% from a year ago — a larger annual increase than the month before. But Trump says Powell refusing to lower rates is hurting the economy.
Trump told reporters Wednesday he’s “not planning” on firing Powell — a move that could undermine the Federal Reserve’s independence. But he later said he hadn’t ruled out firing Powell, saying it would be highly unlikely unless there was an instance of fraud.
“He’s a terrible Fed chair. I was surprised he was appointed,” Trump said, even though he nominated Powell as chair during his first term.
But the president continues to send mixed signals.
Trump said that he floated the idea of firing Powell to some Republican lawmakers on Tuesday and received support from them. A senior White House official who spoke on the condition of an anonymity tells NPR that Trump indicated to the lawmakers that he will fire Powell soon.
Trump caused a wave of speculation and market uncertainty in April this year when he posted, “Powell’s termination cannot come fast enough!” Days later the president said he had “no intention of firing him.”
The White House has also blamed Powell for an ongoing multibillion-dollar renovation of the Federal Reserve offices. Russell Vought, director of the Office of Management and Budget, sent a letter to Powell on July 10 stating there were “serious concerns” about the project and asking for details on the planned expenses.
Powell has said the president doesn’t have the power to fire him under the law before his term ends next May.
In November, he said he would not step down even if Trump asked him to do so. Powell also does not set interest rates unilaterally, and instead leads a board that works together and votes on those decisions.
