President Donald Trump is reportedly considering firing Federal Reserve Chair Jerome Powell, a move that would be unprecedented and could rattle financial markets.
During a private meeting with House Republicans, Trump asked for support to remove Powell and showed them a draft termination letter, according to White House officials. Though he later told reporters, “We’re not planning on doing it,” he added, “I don’t rule out anything,” citing possible “fraud” related to the Fed’s $2.5 billion renovation project.
Trump has long criticized Powell for not cutting interest rates fast enough, pushing for aggressive rate reductions ahead of the next Federal Reserve meeting. Powell has resisted political pressure and emphasized the Fed’s independence, noting that his removal is not legally permitted without cause.
The uncertainty surrounding Powell’s position could weaken investor confidence in U.S. monetary policy. A shake-up at the Fed may undermine trust in the dollar as a global reserve currency and increase market volatility. If the Fed appears politically compromised, the dollar could face downward pressure, especially amid already rising inflation and interest rate concerns.
