Trump expresses doubts about dismissing Powell as head of the Federal Reserve, following prior private discussions where he had suggested this possibility.
President Donald Trump has recently expressed his dissatisfaction with Federal Reserve Chair Jerome Powell, primarily due to Powell's reluctance to cut interest rates quickly amid inflation concerns and the ongoing impact of tariffs. On July 15-16, 2025, during a private Oval Office meeting with a dozen House Republicans, Trump asked for their opinions on whether he should fire Powell.
The meeting, initially held to discuss crypto legislation, saw Trump mention the "concept" of dismissing Powell to the lawmakers. Several House Republicans reportedly urged Trump to dismiss Powell, who has refused to lower interest rates as Trump wants. Trump indicated he might proceed with firing Powell, though he called himself more conservative about that step than they were. He also accused Powell of mismanaging a $2.5 billion renovation project at the Fed, alleging overspending and hinting at investigations related to that project.
However, on July 17, 2025, Trump told reporters that firing Powell was "highly unlikely." This contradiction shows some ambivalence in Trump's stance. Sen. John Kennedy, R-La., said Powell has done a decent job but has not been perfect, while Sen. Thom Tillis, R-N.C., stated that if Powell is dismissed, there will be a "pretty immediate response."
Powell's term as Fed Chair was extended by former President Joe Biden and lasts until May 2026. Powell has defended the Fed's cautious approach to interest rate cuts, citing the need to observe the full effects of Trump's tariffs on the economy. The move to dismiss Powell could destabilize financial markets, as U.S. stocks became shaky when Trump spoke about Powell, with the S&P 500 dropping 0.7% after initial reports that the president may fire the Fed chair. Treasury yields swiveled in the bond market but remained mostly calm.
In the Senate, some Republicans have taken a more guarded approach and backed Powell's performance at the Fed. This ambivalence in Trump's stance and the potential legal complications surrounding the dismissal of a Fed Chair for "cause" make the possibility of Powell's removal uncertain at this time.
The Associated Press contributors to this report include Stan Choe, Lisa Mascaro, Josh Boak, and Stephen Groves. The meeting between Powell and the House Financial Services Committee was abruptly canceled due to House votes, and the 787 switches at the center of the Air India crash probe were scrutinized before. Separate news stories report on Seattle potentially getting a new Trader Joe's store, PCC returning to downtown Seattle with a smaller store and downsized ambitions, and Chuck E. Cheese opening arcades for adults.
[1] Choe, S., Mascaro, L., Boak, J., & Groves, S. (2025, July 17). Trump contemplates firing Powell, but remains ambivalent. Associated Press. [2] Boak, J. (2025, July 16). Trump mulls firing Powell as GOP lawmakers urge action. Associated Press. [3] Choe, S. (2025, July 16). Stocks fall as Trump weighs firing Powell. Associated Press.
- The Senate has taken a more guarded approach, backing Powell's performance at the Fed, which might complicate President Trump's ambitions to dismiss the Federal Reserve Chair, Jerome Powell.
- Amidst the political debate over the future of Jerome Powell's tenure as Fed Chair, Seattle is making headlines for potential changes in its local business landscape, with reports of a new Trader Joe's store, PCC returning to downtown Seattle with a smaller store, and Chuck E. Cheese opening adult-oriented arcades.
- If President Trump decides to go ahead with dismissing Jerome Powell as Fed Chair, it could have a significant impact on policy-and-legislation, economics, and general-news sectors, with possible financial market destabilization noted when Trump initially spoke about Powell, leading to the S&P 500 dropping 0.7%.
