According to a report, Donald Trump has spent months privately discussing the possibility of firing Federal Reserve Chairman Jerome Powell.
The Wall Street Journal revealed that Trump has held meetings at his Mar-a-Lago resort in Florida to weigh whether to try to remove Powell before his term ends in 2026. However, sources indicate that no final decision has been made.
The report also notes that Trump has spoken with former Fed governor Kevin Warsh, among others, and has reportedly considered Warsh a potential replacement.
America’s Treasury Secretary has stepped in to defend the Federal Reserve Chairman, as Donald Trump intensifies his campaign to remove him, declaring that Jerome Powell’s “termination cannot come fast enough.”
According to Politico, Scott Bessent has urged key officials not to act against Powell, warning that such a move could further destabilise already fragile financial markets.
Trump has reportedly spent months privately discussing the possibility of firing Powell, with the Wall Street Journal revealing that he is considering Kevin Warsh, a former Fed governor, as a replacement.
The pressure on Powell escalated yesterday after Trump launched another public attack, criticising him for not slashing interest rates in line with the European Central Bank. “He should have lowered interest rates, like the ECB, long ago, but he should certainly lower them now,” Trump posted on Truth Social, branding Powell “always TOO LATE AND WRONG.”
Powell, however, signalled caution, suggesting there’s no urgency to reduce the current 4.5% rate, especially in light of new tariffs introduced on “liberation day,” which he warned would drive prices higher for American households. “The level of the tariff increases announced so far is significantly larger than anticipated,” Powell said. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
When questioned at the White House, Trump doubled down, asserting his authority to remove the Fed chief. “He’ll leave if I ask him to, he’ll be out of there,” he told reporters. “I’m not happy with him. I let him know and if I want him out, he’ll be out of there real fast, believe me.”
Trump originally appointed Powell during his first term as president. His current push to oust him has raised fresh concerns about the future independence of the central bank, which is intended to operate free from political interference.
Powell has consistently maintained that the president does not have the legal authority to remove him before his term ends in May of next year. However, he noted he is watching an upcoming Supreme Court case that could affect the president’s power to fire heads of regulatory agencies. “I don’t think that decision will apply to the Fed, but I don’t know,” Powell said at an event in Chicago.
Trump’s demands came as the European Central Bank cut interest rates to 2.25%, with ECB President Christine Lagarde warning that the “economic outlook is clouded by exceptional uncertainty,” citing rising trade barriers.
Meanwhile, IMF Managing Director Kristalina Georgieva said the global lender will downgrade its growth forecasts next week, citing the impact of U.S. tariffs. “Trade policy uncertainty is literally off the charts,” she said, pointing to delayed investment decisions, volatile financial markets, and “ships at sea not knowing which port to sail to.”
In the UK, the government is rushing to shield British industries from the fallout. Chancellor Rachel Reeves will travel to Washington next week for the IMF’s annual meetings, where she plans to hold talks with U.S. officials. “We are in active negotiations with our US counterparts on a whole range of issues concerning the tariffs on steel, aluminium, and cars — which are currently at 25% — as well as the headline rate of 10%,” she said.
White House officials remain optimistic, with Vice President JD Vance suggesting a trade deal with Britain could be finalised within three weeks. He said Trump is motivated by a “cultural affinity” with the UK and will deliver a “great” deal.
