US President Donald Trump asked whether he should fire Fed Chair Jerome Powell during a private meeting with Republican House members at the White House last night.
Many in the room supported the idea, according to people with direct knowledge of the meeting. Some attendees said Trump gave the clear impression he would do it.
Trump’s statement came just after House Republicans blocked a vote that would have advanced cryptocurrency legislation. While the fate of the bill, which the president championed, remains uncertain, his comments about Powell have heightened political tensions in Washington.
Federal law states that a Fed chair can only be removed for “good cause.” However, the legal basis for such a step has never been tested. President Trump’s dismissal of Powell in this manner could cause significant volatility in global financial markets.
Administration sources confirmed to CBS News that Trump has raised the possibility both privately and publicly, but the White House has not yet initiated any formal legal action.
Trump has escalated his criticism of Powell in recent weeks. He called Powell “Mr. Too Late,” whom he believes isn’t cutting interest rates quickly enough, and he spoke even harsher to reporters yesterday:
“I think he’s awful. Talking to him isn’t like talking to a thing, it’s like talking to a chair. He has no personality whatsoever.”
Trump also targeted the multibillion-dollar renovation project at the Federal Reserve’s Washington headquarters. Some White House officials allege mismanagement of the project, which they are trying to use as justification for Powell’s dismissal. Powell denies these allegations.
*This is not investment advice.
