President Donald Trump confirmed it is “highly unlikely” he would fire Jerome Powell as chair of the Federal Reserve, as rumors circulating about the “imminent” firing of Powell have prompted a sell-off in stock futures.
In the Oval Office, Trump told reporters, “No, we’re not planning on doing anything,” about whether he wanted to fire Powell.
“I don’t rule out anything but I think it’s highly unlikely unless he has to leave for fraud,” Trump said, while criticizing Powell’s management.
The President’s remarks follow Trump and other White House officials pressuring Powell into lowering the central bank’s key interest rate, or face termination.
This week, President Trump asked GOP lawmakers about their opinions on removing the Fed chair, suggesting the idea of replacing Powell. Afterward, Trump told reporters he had asked lawmakers about the “concept” of firing Powell but denied reports that he intended to do so, calling them “not true.”
Following the meeting, Republican, Anna Paulina Luna posted on X: “Jerome Powell is going to be fired. Firing is imminent.”
On Wednesday afternoon, some GOP senators voiced concern about the impact on the stock market if Trump were to fire Powell.
Louisiana Senator John Kennedy said, “If you fire the chairman of the Federal Reserve, you will see the stock market crash, and you will see the bond market crash. If Powell unilaterally cut interest rates, 300 basis points, 3% right now, you would see … the bond market go into a fit, you would see interest rates rise dramatically, and it would have a huge impact on us borrowing money to fund the government.”
Senator Thom Tillis of North Carolina stated, “What it will do is send a shock wave through the markets about maybe there is a real threat to the independence of the Fed, and I think that will create second and third order effects that none of us who track markets want to see.”
By CEO NA Editorial Staff
