Trump Threatens to Axe Fed Chair Powell in High-Stakes Power Clash

Washington's worst-kept secret just blew up—Trump's gunning for Powell's scalp as monetary policy tensions reach boiling point.

Behind closed doors, sources say the former president has drafted a hit list of Fed officials who 'failed' his inflation test. Powell's name sits at the top in bold.

Market veterans are rolling their eyes—because nothing says 'stable monetary policy' like threatening to fire central bankers who won't print free money. Just ask Argentina how that strategy works out.

TLDR

• Trump Mulls Firing Fed Chair Powell Amid GOP Talks, Publicly Plays It Down

• Trump Weighs Powell’s Ouster Despite Saying It’s “Highly Unlikely”

• Fed Chair Powell Faces Heat as Trump Balances Criticism with Caution

• Trump Eyes Removing Powell, But Markets and GOP Show Mixed Reactions

• Powell’s Future in Doubt as Trump Pressures Fed Over Rate Decisions

President Donald TRUMP is weighing the possibility of removing Federal Reserve Chair Jerome Powell. The situation follows internal discussions with Republican lawmakers and growing criticism of Powell’s performance. Although Trump stated publicly that dismissal is “highly unlikely,” private conversations suggest he remains undecided.

Private Meeting Raises Possibility of Powell’s Removal

Trump met privately with about a dozen House Republicans on Tuesday evening at the WHITE House. During this session, he discussed the potential dismissal of Powell, referencing his dissatisfaction with Federal Reserve policies. The president emphasized Powell’s refusal to reduce interest rates, a decision he sees as obstructive.

What’s real and what’s not?

NOW – Trump says he is "not planning" to fire Fed Chair Powell. pic.twitter.com/HBb636bZ3N

— SpeakWithDeeDee (@SpeakWithDeeDee) July 16, 2025

In the meeting, Trump showed lawmakers a letter proposing Powell’s removal, though sources say it was not authored by him. That letter reportedly acted as a prop rather than a formal draft. Trump also polled lawmakers during the session, many of whom reportedly supported the idea.

Several attendees belonged to the House Freedom Caucus, known for its far-right stance. These members had initially come to discuss cryptocurrency legislation. However, the conversation quickly shifted toward the Fed chair’s role and alleged failures.

Public Comments Contradict Private Intentions

On Wednesday, Trump appeared to moderate his stance during an Oval Office appearance with Bahrain’s Crown Prince. He said he found it “highly unlikely” he WOULD remove Powell but did not rule out the option entirely. He added a caveat, mentioning possible fraud as a reason for dismissal.

This shift followed early media reports that Trump might fire Powell within days. Markets responded sharply, with the S&P 500 dropping 0.7% before rebounding slightly after the president’s clarification. Bond markets also showed minor movement, although they remained relatively stable throughout the day.

White House officials later clarified that Powell’s handling of a $2.5 billion Federal Reserve renovation project was under scrutiny. This financial issue served as one of Trump’s latest justifications for considering Powell’s removal. Administration aides have reportedly raised internal concerns about mismanagement related to that project.

Senate Republicans Remain Divided on Powell’s Future

Some Republican senators signaled support for Powell despite Trump’s frustrations. Senator Thom Tillis warned that firing the Fed chair would provoke immediate and serious consequences. He stressed that central bank independence should not be undermined for political reasons.

Senator John Kennedy also weighed in, saying Powell had “done a decent job,” even if he had not agreed with every decision. He acknowledged differences in monetary policy views but backed Powell’s right to act independently. Other Senate Republicans have taken a more reserved stance while awaiting an internal review of the renovation project.

Meanwhile, a previously scheduled meeting between Powell and the House Financial Services Committee was abruptly canceled due to a legislative schedule conflict. The gathering had been planned for months and was expected to address ongoing Fed operations. No new date has been set for the postponed discussion.

Trump’s fluctuating tone reflects a broader struggle between economic goals and institutional norms. His repeated public and private criticism of Powell underscores a persistent rift. Whether Trump acts remains uncertain, but tensions around Powell’s role continue to escalate.