Trump Walks Back Firing Fed Chair Jerome Powell
President Trump Considers Firing Fed Chair Jerome Powell Amid HQ Renovation Controversy
Late Tuesday, President Trump reportedly told top Republican lawmakers that he was likely to dismiss Federal Reserve Chair Jerome Powell. However, he later denied this possibility, describing it as “highly unlikely” during remarks at the White House on Wednesday.
Sources familiar with the discussions confirmed that Trump had spoken with GOP members about the idea of firing Powell, with some indicating the president’s intention to do so, pending reasons such as misconduct or mismanagement.
The controversy centers around a lavish, $2.5 billion renovation of the Fed’s headquarters in Washington, D.C. The project, initially estimated at $1.9 billion, has faced scrutiny for ballooning costs and its resemblance to a royal palace, leading critics to label it a vanity project.
Despite the reports, Powell publicly dismissed The Post’s claims about the renovations, calling them “misleading and inaccurate,” even as official documents from 2021 confirmed the project’s scope and costs.
The news caused significant market volatility, with stocks falling sharply in response to the headlines and then rebounding after Trump’s White House comments. Some insiders suggest that the president’s overtures to remove Powell may be a tactic to pressure him into resigning voluntarily.
Powell, who is nearing the end of his term in May 2024, has stated he intends to serve out his full appointment despite ongoing political pressures. The Federal Reserve maintains that the agency did not violate planning regulations, citing coordination with official bodies.
Former high-ranking officials, including Elon Musk, have highlighted the controversy as a potential investigation point, especially given the broader context of economic pressures during the pandemic and the financial losses the Fed has incurred, now exceeding $220 billion.
The situation underscores ongoing tensions between the White House and the Federal Reserve, with speculation about whether the president might act to remove Powell for reasons related to perceived mismanagement or violations of law.