Today's News: Trump Firing Federal Reserve Chair Jerome Powell “Highly Unlikely”
Many lawmakers and financial experts warned against such an unprecedented move, emphasizing the critical importance of the Federal Reserve’s independence for economic stability.
Photo: Tom Brenner for The New York Times
Overview
Date: July 15-16, 2025
Topic: President Trump’s Consideration of Firing Federal Reserve Chair Jerome Powell
Summary: President Donald Trump publicly stated it was “highly unlikely” he would fire Federal Reserve Chair Jerome Powell, despite having polled House Republicans on the matter the previous day and reportedly showing a draft termination letter. Trump cited potential “fraud” related to the Fed building’s renovation as a possible cause for removal, escalating his ongoing pressure campaign for lower interest rates. The reports of a potential firing caused initial market volatility, and many lawmakers and financial experts warned against such an unprecedented move, emphasizing the critical importance of the Federal Reserve’s independence for economic stability.
Sources
Fox Business - Trump asks House Republicans if he should fire Fed Chair Jerome Powell, sources say
The Washington Post - Trump floats firing Fed chair with GOP lawmakers, then backs off
The Wall Street Journal - Trump Denies He Is Planning to Attempt to Fire Powell
Key Points
President Trump polled House Republicans during a meeting about whether he should fire Federal Reserve Chair Jerome Powell.
Trump publicly confirmed discussing the “concept” of firing Powell and noted that most lawmakers he asked supported the idea, but he claimed to be “more conservative” on the matter.
Trump publicly stated it was “highly unlikely” he would fire Powell, but added a caveat that he would not rule it out if there were grounds for “fraud.”
The alleged “fraud” is linked to the ongoing and costly $2.5-$2.7 billion renovation project of the Federal Reserve building.
Trump’s primary motivation for seeking Powell’s removal is his desire for the Federal Reserve to significantly lower interest rates.
Economists, lawmakers, and market participants universally warned against the potential negative consequences of firing Powell, citing the importance of the Federal Reserve’s independence for market stability and economic confidence.
The discussion of firing Powell is part of a broader, long-standing pressure campaign by the Trump administration to influence the Federal Reserve’s monetary policy.
Legal constraints on presidential power, specifically a recent Supreme Court ruling, suggest that Fed officials can only be removed “for cause,” generally interpreted as malfeasance or dereliction of duty, not policy disagreements.
Unique Highlights
The New York Times identifies William J. Pulte, director of the Federal Housing Finance Agency, as the person who provided a draft letter to fire Powell to the president. It also notes Pulte’s history of criticizing Powell and targeting perceived enemies of Trump. The article also mentions Trump’s past insults for Powell (e.g., “major loser,” “numbskull”) and suggests Trump’s focus on Powell might be a distraction from anger over Jeffrey Epstein files.
CNN reports that a senior White House official told them Trump indicated he was going to fire Powell, possibly Wednesday, and a person in the room saw Trump gesture toward a document he called a firing letter. It details the immediate market reaction, with the US dollar index dropping as much as 0.8% before paring losses. CNN also quotes Republican Senators John Kennedy and Thom Tillis expressing strong concerns about a stock market crash and undermining Fed independence if Powell were fired. It further outlines a coordinated White House effort to pressure Powell, including actions by Russell Vought (OMB Director) and Bill Pulte, and the ousting of three members of the National Capital Planning Commission.
NBC News highlights Representative Anna Paulina Luna’s X (formerly Twitter) posts claiming Powell’s firing was “imminent,” which contributed to a sell-off in stock futures. It also notes that CBS News first reported the meeting.
Fox Business quotes Senator Rick Scott stating Powell “needs to resign” and House Speaker Mike Johnson saying he is “not sure” if Trump can fire Powell but that “new leadership would be helpful.” It also reports Trump’s false claim that President Joe Biden appointed and extended Powell’s term.
The Washington Post mentions the meeting with House Republicans was initially about cryptocurrency legislation. It quotes JPMorgan Chase CEO Jamie Dimon on the importance of Fed independence and details the historical context of Fed independence, including the 1951 Treasury-Fed Accord and President Richard Nixon’s pressure on Fed Chair Arthur Burns. It also reports that Kevin Hassett is emerging as a front-runner to succeed Powell, among other contenders.
The Wall Street Journal provides details on the Fed building renovation project’s cost overruns, attributing them partly to unforeseen construction conditions like asbestos, toxic soil, and a high water table. It quotes Treasury Secretary Scott Bessent dismissing Trump’s attacks as “working the refs” and notes that Powell previously signaled he would legally fight any removal.
Contrasting Details
Imminence of Firing:
The New York Times states Trump indicated he “likely would” fire Powell, and Representative Anna Paulina Luna (quoted in NYT and NBC News) posted that firing was “imminent” or “99% sure firing is imminent.”
In contrast, Trump’s public statements (across all articles) consistently denied imminent plans, stating “highly unlikely” and “we’re not planning on doing anything.” Other White House officials (CNN, NBC News) and Treasury Secretary Scott Bessent (NBC News, The Wall Street Journal) also downplayed the imminence, suggesting Trump was “toying with the idea” or “working the refs.”
Existence of a Draft Letter:
The New York Times explicitly reports that Trump “showed off a draft of a letter firing… Powell” and that a draft was given to him by William J. Pulte. CNN supports this, stating Trump “gestured toward a document he said was a letter firing Powell.”
However, Trump himself (quoted in The New York Times) “said he hadn’t had a letter drafted,” directly contradicting the reports from sources.
Responsibility for Powell’s Appointment:
Fox Business and The Washington Post report that Trump falsely blamed President Joe Biden for placing Powell in the position or extending his term.
The Washington Post and The Wall Street Journal clarify that Trump initially nominated Powell in 2017, and Biden renominated him for a second term in 2022.
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