Trump reveals draft letter firing Fed Chair Powell during crypto bill discussion

Trump's tensions with the Fed chair overshadow policy talks as he seeks GOP input on unprecedented move.

Key Takeaways

• President Trump revealed a draft letter for firing Fed Chair Jerome Powell during a meeting originally focused on crypto legislation.
• No modern president has attempted to remove a Federal Reserve chair, as legal protections are in place for the position.

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President Trump revealed a termination letter addressed to Fed Chair Jerome Powell in a Tuesday night Oval Office meeting, the New York Times reported Wednesday, citing two people with knowledge of the matter. Trump was said to have solicited opinions from House Republicans about firing Powell.

Trump has publicly denied his firm intentions to remove Powell, despite numerous reports alleging he did so in response to the central bank’s reluctance to cut rates. The president did, however, openly express frustration.

According to the new report, the meeting was originally scheduled to discuss concerns about crypto legislation, but Trump shifted focus to Powell, whom he appointed Fed chair in 2017 during his first presidency.

“Jerome Powell is going to be fired. Firing is imminent,” Representative Anna Paulina Luna, Republican of Florida, posted on X during the meeting.

Trump has recently escalated his criticism of Powell, calling for his resignation over his interest rate policies. The president has labeled Powell a “major loser,” a “numbskull” and a “stubborn mule,” while criticizing the Fed’s $2 billion building renovation project that is currently $700 million over budget.

Despite Trump’s Friday statement that he had “no plans to fire” Powell, whom he said was doing a “terrible job,” the existence of the draft letter suggests more serious consideration of the move.

Presidents cannot remove Fed officials without cause, a protection reinforced by a Supreme Court ruling in May regarding Trump’s authority to remove certain independent agency officials. No president in modern history has attempted to fire a Fed chair.

Powell’s term as chair ends in May, though he can remain on the Board of Governors until 2028.

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