Former U.S. President Donald Trump stated he was “highly unlikely” to fire Federal Reserve chairman Jerome Powell. This public declaration followed reports that, in a private meeting, Trump had indicated he was considering dismissing Powell, who has been a frequent target due to disagreements over interest rate policy.
Trump confirmed that he discussed the possibility of dismissing Powell during a White House meeting with approximately a dozen House Republicans. According to Trump, nearly all of the legislators advised him to proceed with the dismissal. A White House official indicated Trump seemed inclined to act on this advice, even displaying a draft letter regarding Powell’s termination, though it was described as a ‘prop’.
During an Oval Office meeting with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa, Trump stated it was “highly unlikely” he would dismiss Powell “unless he has to leave for fraud”. Recent accusations from White House and administration officials have also targeted Powell, alleging mismanagement of a $US2.5 billion renovation project at the Fed dating back to 2017. These accusations add to Trump’s long-standing efforts to remove the politically independent central banker.
Trump initially nominated Powell as Fed chairman in November 2017, and former President Joe Biden extended Powell’s term until May of next year. The Federal Reserve (Fed) is the central banking system of the United States. It conducts monetary policy, regulates banks, and maintains the stability of the financial system.
