President Donald Trump has sharply criticized Federal Reserve Chair Jerome Powell for not lowering interest rates|White House
During a private White House meeting with House Republicans, President Donald Trump displayed a draft letter to fire Federal Reserve Chair Jerome Powell and asked members if he should proceed, according to The New York Times.
However, Trump denied the plans but admitted he’s been considering the move, with several lawmakers encouraging it.
Trump’s longstanding frustration
The president has repeatedly pressured Powell to cut interest rates, pushing the limits of central bank independence to boost economic growth.
He sharply criticized Powell for not lowering interest rates and accused him of mismanaging a $2.5 billion Fed building renovation, which is already $700 million over budget.
He suggested fraud might be involved, though no evidence has surfaced.
No legal grounds yet
Legal experts say Trump can’t remove Powell without cause. Disagreements over policy or renovations don’t qualify.
Firing Powell would mark an unprecedented challenge to the Fed’s independence.
Uncertain outcome
Though Trump hasn’t acted, the letter’s existence and growing pressure suggest he is serious about the matter. Markets may react sharply if Trump follows through.