President Donald Trump publicly denied on Wednesday that he intends to dismiss Federal Reserve Chairman Jerome Powell, despite reportedly telling Republican lawmakers the previous evening that he was considering such a move.
Speaking to reporters during a meeting with Bahrain’s Crown Prince in the Oval Office, Trump said, “No, I’m not talking about that. Fortunately, we get to make a change in the next eight months or so,” referring to Powell’s term ending in May 2026.
However, a senior White House official told USA TODAY that in a closed-door Oval Office meeting on Tuesday night, Trump told a group of Republican lawmakers that he was leaning toward firing Powell and asked them for their opinions. “Almost all of them said I should, but I’m more conservative,” Trump reportedly said, later calling the media reports “not true.”
Ongoing Criticism of Powell
Trump has been highly critical of Powell for several months, primarily over interest rate policy. He has repeatedly accused the Fed Chair—whom he originally appointed during his first term—of failing to lower rates sufficiently. “I think he’s done a terrible job. He’s costing us a lot of money,” Trump said on Wednesday, while stopping short of confirming he would take action to remove Powell from office.
Federal Reserve Responds Cautiously
The Federal Reserve declined to directly address the rumors. In a brief response on July 11, a spokesperson pointed to previous statements by Powell reaffirming his intent to complete his term, which runs through May 2026.
Trump left the door open to the possibility of dismissal but emphasized that it was unlikely. “I don’t rule anything out, but I think it’s highly unlikely—unless he has to leave for fraud,” he said, adding ambiguity to an already tense relationship between the executive branch and the traditionally independent central bank.
Political and Market Implications
The remarks have further fueled speculation about the future of the Federal Reserve’s leadership amid broader discussions over monetary policy. Trump’s criticisms of Powell come as inflation continues to rise modestly, and the president increases pressure on the Fed to lower interest rates ahead of the 2026 presidential election cycle.
While the President has the authority to appoint or nominate future Fed chairs, legal and political hurdles remain for dismissing a sitting Federal Reserve Chair mid-term without just cause, such as misconduct or proven incapacity.
The White House has not issued a formal statement clarifying Trump’s position or intentions. However, his comments suggest that while Powell’s dismissal is not imminent, his position remains under close scrutiny from the administration.
