Trump Considers Firing Fed Chair Powell Amid Tensions

President Donald Trump has signaled to Republican lawmakers his intention to fire Federal Reserve Chair Jerome Powell, citing frustration over Powell's refusal to lower interest rates and criticizing the Fed's costly headquarters renovation. Trump has reportedly shown GOP members a draft termination letter but publicly maintains that firing Powell would be unlikely unless fraud is involved. News of the possible dismissal has led to declines in financial markets due to fears of Federal Reserve destabilization. Legal experts point out that the president may lack the authority to remove the Fed chair without cause, and Powell has stated he will not resign before his term ends in May 2026. No modern U.S. president has attempted to fire a sitting Fed chair, and White House officials are reportedly weighing the risks of such an unprecedented move. The situation highlights ongoing tensions over central bank independence and executive authority.