Trump denies plans to fire Fed Chair Jerome Powell despite what he told Republicans
President Trump denied he plans to fire Federal Reserve chairman Jerome Powell after telling Republican lawmakers he would likely make the move.
WASHINGTON − President Donald Trump denied that he's close to firing Federal Reserve Chair Jerome Powell after telling Republican lawmakers in a closed-door meeting that he would likely make the move.
"No, I'm not talking about that. Fortunately, we get to make a change in the next eight months or so," Trump told reporters on July 16, referring to the conclusion of Powell's term as chairman, which ends in May of 2026.
Trump informed Republican lawmakers in an Oval Office meeting Tuesday night that would likely soon fire Powell after the president polled them on what he should do, a senior White House official told Paste BN.
"Almost all of them said I should, but I'm more conservative," Trump said of the meeting, calling recent news reports that he's moving toward firing Powell "not true."
For months, Trump has criticized Powell for not lowering interest rates, labeling the Fed chairman "too late" for holding interest rates steady.
Fielding questions from reporters during a separate Oval Office meeting Wednesday, Trump expressed disappointment that Powell was ever appointed to lead the independent agency ‒ even though it was Trump who in 2017 nominated Powell to Fed's board of governors during his first term.
“He’s a terrible Fed chair. I was surprised he was appointed," Trump said, falsely accusing his predecessor, former President Joe Biden, of appointing Powell. "I was surprised, frankly, that Biden put him in and extended him, but they did."
Trump suggests 'fraud' in Federal Reserve HQs renovation
Trump has recently seized on the Federal Reserve's $2.5 billion headquarters renovation project of three historic buildings on the National Mall, suggesting the ballooning cost could be grounds for Powell's termination.
"I don't rule anything out, but I think it's highly unlikely," Trump said of firing Powell. "Unless he has to leave for fraud. It's possible there was fraud involved with the $2.5 billion renovation."
The original cost of the renovation was estimated at $1.9 billion in 2019 but swelled to $2.5 billion. The more than 33% increase was due to design changes, costs of materials, equipment, and labor and other “unforeseen conditions” like more asbestos than anticipated and toxic contamination in soil, the Fed said over the weekend.
The Federal Reserve, an independent agency that operates as the central bank of the United States, typically reduces interest rates to lower borrowing costs for consumers and bolster a sluggish economy and keeps rates high to head off inflation.
Powell has cited anticipated rising inflation from Trump's massive tariffs on imports as a reason to keep rates unchanged. Inflation accelerated in June, the Labor Department announced Tuesday, with prices rising by 2.7% over the past 12 months. It was the highest annual inflation rate since February.
The Fed on July 11 declined to comment on rumors of Powell potentially stepping down, but directed Paste BN to the many times Powell has said he intends to serve his term.
Although Powell's term as Fed chairman ends in 2026, he can stay on as a governor on the Fed board until 2028.
Whether Trump would even have the legal authority to fire Powell is unclear.
A majority of Supreme Court justices signaled in a May 22 ruling they believe Trump wouldn't be allowed to fire Powell, arguing the Federal Reserve is "a uniquely structured, quasi-private entity" that is different than other independent agencies. The line was contained in a Supreme Court opinion allowing Trump to fire two federal labor board members.
Reach Joey Garrison on X @joeygarrison.